French luxury group LVMH offers to buy U.S. jeweler Tiffany: sources

2020-02-25 05:00:08    阅读:810596

(Reuters) - Louis Vuitton owner LVMH (LVMH.PA) has approached Tiffany & Co (TIF.N) with a $14.5 billion acquisition offer, people familiar with th

e matter said, at a time when the U.S. luxury jeweler grapples with the

impact of tariffs on its exports to China. FILE PHOTO: A Tiffany & Co logo is seen outside the store on 5th Ave in New York, New York, U.S., March 19, 2019. REUTERS/Carlo AllegriLVMH, which has for years been looking for ways to expand in the U.S. market, submitted a preliminary, non-binding offer to Tiffany earlier this month, one of the sources said. LVMH’s offer valued Tiffany at about $120 per sh白小姐玄机单双八肖 are, another of the sources added. Tiffany shares ended trading on Friday at $98.55. Tiffany has hired advisers to review LVMH’s offer but has no

t yet responded to it, and there is no certainty that it will negotiate a deal, according to the sources. The sources asked not to be identified because the matter is confidential. LVMH and Tiffany declined to comment. Bloomberg News reported earlier on Saturday that LVMH was holdin

g talks w

ith Tiffany. LVMH, which is behind brands such as Fendi, Christian Dior and Givenchy,

as well as Veuve Cliquot champagne, has stood out for several

years as one of the top performers in the upscale retail sector, where

not all labels are benefiting to the same degree from booming Chinese appetite for branded goods. Tiffany, on the o

ther hand, has not been as resilient. Beyond the tariffs that have been triggered by the trade war between the United States and China, a lower Chinese domestic sales tax has also con

tributed to double-digit decreases in its sales to Chinese tourists in the United States and in other destinations. High-end brands have also long relied on Hong Kong

as a major shopping hub drawing visitors from mainland China in particular, and four months of pro-democracy demonstrations are starting to take their toll. However, earlier this mo

nth LVMH, which has a market capitalization of 194 billion euros ($215 billion), beat sales forecasts for the third quarter despite the unrest in Hong Kong. In

August, Tiffany reported quarterly earnings that also beat analysts’ expectations, thanks to a drop in marketing costs. Tiffany has been refreshing its offerings with more affordable items such as pendants and earrings, to app

eal to millennials who have been gravitating to lower-priced competitors such as Denmark’s Pandora A/S (PNDORA.CO) and Signet Jewelers (SIG.N). Paris-headquartered LVMH is controlled by the Arnault family and is led by Bernard Arna

ult, France’s richest man. Based in New York and best known for its diamond engagement rings, Tiffany ope

rates more than 300 retail stores globally.