LVMH: stock down - still wants breakfast at Tiffany's?
(CercleFinance.com) - The LVMH share is down almost 1% on Thursday morning.
According to Bloomberg, LVMH appears to have raised its offer on Tiffany & Co. to 130 dollars per share. The French luxury giant should be capable of closely analysing the American jeweler's accounts, Bloomberg says.
LVMH had already offered 120 dollars per share, in cash. This already represented an instantaneous premium of nearly 22%, and would value Tiffany at some 14.6 billion dollars, or just over 13 billion euros. This can be compared with LVMH's current market capitalisation of 192 billion euros.
Now the leading luxury group is offering almost 16 billion dollars, although LVMH may have to raise its offer further to convince Tiffany & Co., Aurel BGC said this morning.
Known mainly for its jewelry, the US group is expected to report 2019 sales that are up slightly at around 4.5 billion dollars (against nearly 54 billion euros for LVMH). Its operating margin should remain around its normative level, around 17% - against over 20% for LVMH.
At Bank of America Merrill Lynch, analysts have calculated that the integration of Tiffany would almost double the sales of LVMH's Watches and Jewelry division, which would then reach 13% of total sales and become the group's third largest business. While it is currently the smallest (in terms of sales) of LVMH's five divisions.
Note that LVMH has additional leeway in terms of debt, partiuclarly at current interest rates.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
According to Bloomberg, LVMH appears to have raised its offer on Tiffany & Co. to 130 dollars per share. The French luxury giant should be capable of closely analysing the American jeweler's accounts, Bloomberg says.
LVMH had already offered 120 dollars per share, in cash. This already represented an instantaneous premium of nearly 22%, and would value Tiffany at some 14.6 billion dollars, or just over 13 billion euros. This can be compared with LVMH's current market capitalisation of 192 billion euros.
Now the leading luxury group is offering almost 16 billion dollars, although LVMH may have to raise its offer further to convince Tiffany & Co., Aurel BGC said this morning.
Known mainly for its jewelry, the US group is expected to report 2019 sales that are up slightly at around 4.5 billion dollars (against nearly 54 billion euros for LVMH). Its operating margin should remain around its normative level, around 17% - against over 20% for LVMH.
At Bank of America Merrill Lynch, analysts have calculated that the integration of Tiffany would almost double the sales of LVMH's Watches and Jewelry division, which would then reach 13% of total sales and become the group's third largest business. While it is currently the smallest (in terms of sales) of LVMH's five divisions.
Note that LVMH has additional leeway in terms of debt, partiuclarly at current interest rates.
Copyright (c) 2019 CercleFinance.com. All rights reserved.