PARIS (AP) – French luxury group LVMH has offered to buy Tiffany & Co for USD14.5 billion in cash, sending shares in the New York jewellers soaring.
The purchase would add another household name to LVMH’s plethora of upscale brands. It owns fashion names such as Christian Dior, Fendi, and Givenchy as well as watchmaker Tag Heuer. It would also give LVMH a much broader foothold in the United States (US) and broaden its offerings in jewellery.
LVMH cautioned in a brief statement that “there can be no assurance that these discussions will result in any agreement.”
Tiffany said the offer was for USD120 a share, which is about USD14.5 billion. The Wall Street Journal first reported on the offer over the weekend.
The New York-based company said yesterday that it was considering the offer. Its shares jumped 31 per cent to USD128.81 in premarket trading in New York.