LVMH has offered to buy Tiffany, known for its engagement rings and ties to Hollywood glamour, as the owner of Louis Vuitton and Bulgari seeks to expand in jewelry, one of the fastest-growing parts of the luxury goods market.
In a deal that would beef up its smallest business, LVMH on Monday said it had approached Tiffany about an unsolicited non-binding offer without giving further details.
Confirming the move, Tiffany said the offer was worth $120 per share, which would value Tiffany at nearly $14.5 billion and represents a 22% premium over the stock’s closing price on Friday.
LVMH said there was no guarantee that preliminary discussions would result in an agreement.
Several analysts said Tiffany might reject the offer to seek a higher price tag, potentially kicking off a battle for control of the company known for its signature egg-blue packaging.
Analysts said Tiffany could be worth as much as $140-$160 per share. The stock trades at a big discount to its U.S and European sector.
Read more about LVMH’s interest in acquiring luxury jeweler Tiffany on the CNBC website HERE