LVMH boosts offer for Tiffany towards $15bn

LVMH and Tiffany & Co have entered talks after the French owner of Louis Vuitton boosted its offer for the US jeweller, according to sources.

The companies began discussions after LVMH offered to pay about $130 per share for Tiffany, said the sources. No final decision has been made and talks could still fall through.

A representative for LVMH declined to comment. A representative for Tiffany couldn’t immediately be reached.

LVMH offered to buy Tiffany in October in a deal that valued the company at $120 per share, or about $14.5 billion (Dh53.26bn).

Tiffany is reviewing the proposal with advisers to determine what is in the best interest for shareholders, it said at the time.

Tiffany was expected to reject that offer as too low, as executives believe the company should command a similar earnings multiple to other luxury takeovers such as Bulgari, Bloomberg News previously reported.

Tiffany’s shares fell less than 1 per cent to $123.33 in New

York trading on Wednesday, giving the company a market value of about $14.9bn.

The deal would expand LVMH’s access to US luxury shoppers, giving it a 182-yearold brand known for its robin’s egg blue boxes. It would also enable LVMH to challenge Cartier owner Richemont for dominance in the global jewelry business.

Tiffany has been working to

LVMH offered to buy Tiffany in October in a deal that valued the company at $120 per share, or about $14.5bn

bounce back under chief executive Alessandro Bogliolo, who is cutting back on entry-priced gifting options and revamping its marketing to target younger shoppers.

At LVMH, the brand would join a stable that already includes Christian Dior fashion, Bulgari jewellery and Dom Perignon Champagne.