Louis Vuitton owner LVMH has approached top tier jeweller, Tiffany & Co with a takeover offer.
Bloomberg said (quoting ‘people familiar with the matter’) said a price was not mentioned.
Any bid will be expensive – but the value would be relative given the value difference with LVMH.
At Friday’s closing Tiffany’s was valued at $US11.9 billion ($A$17.6 billion) while at the same time LVMH was worth 193.27 billion euros or $US215 ($A315 billion).
That would make any bid (probably around $22 billion to make it convincing) would be easy for LVMH which is the world’s biggest luxury products group.
LVMH is behind fashion brands like Christian Dior, Louis Vuitton, Moet and Veuve Cliquot champagnes, Bulgari, Hennessy brandies and cognacs and Tiffany’s would strengthen its presence in the US and Asia where the jeweller’s brand has high recall.
Tiffany’s shares are up 22% so far this year which is a touch faster than the 20.5% rise in the S&P 500.
