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LVMH puts in multi-billion pound bid for Tiffany & Co

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Luxury group, LVMH, has confirmed it is in talks to takeover Tiffany & Co.

Following speculation in the press, the group has admitted making moves to acquire the American jewellery brand.

“In light of recent market rumours, LVMH Group confirms it has held preliminary discussions regarding a possible transaction with Tiffany,” the company said in a statement. “There can be no assurance that these discussions will result in any agreement.”

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Sources familiar with the talks LVMH has had with the brand have said the luxury group proposed a bid valuing Tiffany at about $120 (£93) per share.

That would be equivalent to a $14.5 billion (£11.5m) acquisition offer.

It the offer is accepted this will be LVMH’s biggest purchase to date and the brand will bolster the luxury group’s jewellery offer, which already includes fine and high-couture pieces by Bvlgari, Dior and Chaumet.

In addition, the deal would give LVMH greater exposure to the US, its second biggest region by sales after Asia.

LVMH have made no comments regarding the actual offer on the table and Tiffany & Co is yet to respond to the company’s statement.

According to media sources, Tiffany & Co has hired advisers to review LVMH’s offer.

Global demand for LVMH’s jewellery products has held up well in recent years, but the same cannot be said for Tiffany, which has seen worldwide sales fall this year.

Tiffany & Co has been implementing a strategy to make the brand relevant for the next generation of luxury shoppers. In the UK this saw Tiffany & Co launch a concept store in Covent Garden that is unlike anything that has been seen by the brand before.

The jewellery firm has also tapped into the men’s luxury jewellery market and introduced designs with younger global muses.

However, sales have continued to slide, with the brand being hit by the U.S.-China trade war as Chinese tourists spend less in US shopping hubs.

Tags : LVMHTiffanyTiffany & Co
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The author Stacey Hailes

Editor, Professional Jeweller

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