Iconic jewellery brand Tiffany & Co has revealed it is “carefully reviewing” the bid from LVMH to acquire the business.
In an official statement, Tiffany confirmed that the luxury group put in a bid to takeover Tiffany & Co for $120 (£94) per share in cash.
“While the parties are not in discussions, Tiffany’s Board of Directors, consistent with its fiduciary responsibilities, is carefully reviewing the proposal, with the assistance of independent financial and legal advisors, to determine the course of action it believes is in the best interests of the Company and its shareholders,” says the brand, adding: “Tiffany shareholders need take no action at this time.”
Within the statement, Tiffany also affirmed it is successfully executing on its business plan and remains focused on achieving its goal of becoming ‘the next generation luxury jeweller’.
The brand has been trying to reach its goal through working on six key strategic priorities: Amplifying an evolved brand message; Renewing its product offerings and enhancing in-store presentations; Delivering an exciting omnichannel customer experience; Strengthening its competitive position and leading in key markets; Cultivating a more efficient operating model; and inspiring an aligned and agile organisation.
LVMH publicly stated that it had been a multi-billion pound offer to purchase Tiffany & Co yesterday.
With the Tiffany & Co now confirming the price on the table, it is clear jewellery is an important category to LVMH as if this offer is accepted it will be the luxury group’s biggest acquisition to date.
Following LVMH’s statement yesterday, Tiffany’s shares surged as much as 31% to one-year highs at around $130 (£101) in New York and are on track for their best daily performance since the 182-year-old company’s market listing in 1987.