With the brute strength of the French giant on the one hand and the high growth potential of the American jeweler on the other, LVMH's acquisition of Tiffany & Co. looks set to be a positive move for all concerned.
French luxury group LVMH has persuaded U.S. jewelry chain Tiffany & Co to provide it with confidential due diligence after it raised its bid to close to $16 billion, people familiar with the matter said on Wednesday.
Tiffany & Co has asked Bulgari owner LVMH to raise its $14.5 billion acquisition offer, arguing that it significantly undervalues the U.S. jewelry chain, people familiar with the matter said on Wednesday.
Tiffany investors are hoping for a higher offer than LVMH's proposal worth $120 a share. But the deal will require a lot of polish if it is to make sense for the French company’s shareholders, analysts say.
Third-quarter earnings showed that, despite China's economic growth slowing to a three-decade low, shoppers are continuing to spend heavily on luxury - but doing it at home or online, making savings on holiday costs.
Luxury brands from Prada to Cartier are counting the cost to their businesses of four months of unrest in Hong Kong that has kept tourists away and forced shops to shut, with upcoming results set to show the damage.