Hedge fund claims Tiffany is 2011 takeover target

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Fund says LVMH, Swatch and Richemont are likely acquirers.

Investment fund Bernheim, Drefus & Co believes that luxury jewellery Tiffany & Co could be subject to a takeover bid by a luxury conglomerate in 2011.

The Paris-based hedge fund manager said that there are three “likely acquirers” – Richemont, Swatch Group and LVMH. It said: “Being part of a luxury conglomerate, Tiffany would be able to increase its footprint and have a stronger position towards its stakeholders.”

Bernheim, Drefus & Co added: “The recession resulted in deep cuts in Tiffany’s revenues. Luxury products are the first one to go when consumers start to save but the harder the fall, the greater the bounce. 2010 has been a splendid year for Tiffany with a surge in both sales and stock price and with a great outlook and a consolidating market there is still plenty of room for a continuing growth in the stock.”

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Tiffany reported global sales of US$2.7 billion (£1.74bn) in 2009. The jewellery brand operates in a number of countries around the world but 70 percent of sales are made up by the US and Japanese markets.

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