viewTiffany & Co.

Tiffany asks LMVH to up US$14.5bn offer: media reports

The US jeweller has reportedly told the bidder it could provide confidential due diligence for a higher sum

Tiffany & Co. - Tiffany asks LMVH to up US$14.5bn offer: media reports
Tiffany is valued at US$15bn on its current share price

Tiffany & Co. (NYSE:TIF) has asked French luxury group LVMH to up its reported US$14.5bn acquisition offer, arguing it is a significant undervaluation, according to media reports.

The US jeweller has told the bidder it could provide confidential due diligence for a higher sum, according to Reuters, with LMVH reportedly considering a new offer.

READ: Tiffany shares jump as Louis Vuitton owner LVMH confirms takeover discussions

LVMH, the owner of upscale brands such as Louis Vuitton, Fendi, Christian Dior and Givenchy, confirmed last week it held "preliminary talks" to acquire the New York-based firm, in response to media reports which set figures at US$14.5bn, or about US$120 per share.

Tiffany – valued at US$15bn at current share prices - has been hit by the US-China trade war which has seen double-digit plunges in its sales to Chinese tourists after Beijing imposed a lower domestic sales tax.

In an initial reaction to the bid approach chatter, analysts at Deutsche Bank upgraded their rating for Tiffany to 'buy' from 'hold' and raised their target price to US$130 from US$100, saying they considered the approach "credible" on the back of Tiffany's strong brand equity, its potential relaunch and the involvement of a third party.

LVMH, which has been looking to expand to the US for years, is one of the top performers in its sector, with a market capitalisation of €194bn and a portfolio of luxury brands in high demand among Asian customers.

Tiffany’s shares were little changed in pre-market trading, hovering at US$125.20.

Quick facts: Tiffany & Co.

Price: 121.99 USD

Market: NYSE
Market Cap: $14.8 billion

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