Tiffany & Co has reportedly told LVMH to improve on its $14.5 billion (11.5bn) acquisition offer.
According to news agency, Reuters, sources close to the matter say the jewellery brand believes the offer on the table significantly undervalues the business and it will need to be raised if the luxury group wants Tiffany & Co to be the next jewel in its crown.
Tiffany & Co’s board has concluded that LVMH’s bid of $120-per-share (£93) is too low to become the basis for negotiations, Reuter reports a source saying. However, it is not a blanket no from the brand like takeover talks in the past have been
The source added that Tiffany has informed LVMH it could open its books and provide confidential due diligence if the French luxury group sweetens its offer.
It is believed LVMH is “engaged” in the conversation and is now considering a new offer.
If a deal of the same value offered or high 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.