Tiffany is expected to rebuff an unsolicited $14.5bn takeover approach from French luxury group LVMH, with the US jeweler believing the offer undervalues the company, according to the FT.
Tiffany’s advisers were on Sunday still assessing the surprise indicative offer from Bernard Arnault’s LVMH, the world’s largest luxury group by sales, with the board set to consider the next move. The all-cash offer came earlier this month and was pitched at about $120 per Tiffany share, a premium of about 30 per cent to Tiffany’s share price at the time.
“LVMH is the best luxury goods company in the world and has had huge success with Bulgari,” John Armitage, chief investment officer of London-based Egerton, a hedge fund that is the sixth-biggest shareholder in Tiffany, told the Financial Times.
“As Tiffany shareholders, we would like the value of a great brand and company maximised.” Other large shareholders in Tiffany include Qatar Holding, an arm of the country’s sovereign wealth fund. Over the past four decades Mr Arnault, Europe’s richest person, has built LVMH from a near-bankrupt French textile company to the world’s largest luxury group by revenues. Its brands include Dior, Louis Vuitton and Sephora.
A tie-up between LVMH and Tiffany would mark one of the French group’s largest acquisitions and strengthen its position in jewellery, adding to its $5.2bn purchase of Italian jeweller Bulgari in 2011.
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI