“If you want us, you will have to pay more”, Tiffany tells LVMH. The French maison replies: “We are studying it, and soon we will present it to you”. This could be the hypothetical exchange between the two luxury giants. Among which, as we know, “tight” negotiations are underway, that could lead to the sale of the jeweller (and not only, given the importance of leather goods on his US turnover) to the French multinational group. Tiffany, therefore, raises the stakes. And LVMH seems intent on taking requests by the American into consideration.
Ballet of indiscretions
The operation is of the highest level, particularly from a financial point of view. Inevitable, therefore, that it brings with it a frenetic ballet of indiscretions. The first concerns Tiffany. As soon as the news of LVMH’s first offer of over 14 billion dollars spread, the Americans replied that it was too low. Subsequently, Reuters reported that Tiffany may have asked Bernard Arnault to raise the stakes. “With 14.5 billion we don’t even sit down and talk about it”. According to the agency, Tiffany would have informed the French that it could open confidential due diligence if the French luxury group improved its offer.
Arnault may evaluate it
Reuters claims that Arnault is considering a new offer, writing that Tiffany’s Board of Directors would begin to consider the offer if LVMH increased it from 120 to 140 dollars per share. Overall, the offer would go from 14.5 to almost 17 billion dollars.
Watch out for others
However, not only LVMH may be on the trail of Tiffany. The gossip carousel, in fact, signals Richemont‘s “bad mood” and its potential willingness to come into play (but the investment is, perhaps, excessive). Without forgetting LVMH’s historical rivals, namely those of Kering. Pinault’s battleship, in the jewellery segment, has “only” Boucheron and Pomellato, obtaining 7% of the group’s total revenue. With Tiffany, it could make an important leap. Generating, as LVMH could also do, interesting synergies regarding fashion accessories.