Tiffany: shares rise after LVMH's new takeover offer
(CercleFinance.com) - Shares in US luxury jeweler Tiffany rose more than 5% on Monday after LVMH made a takeover bid that values the company at approximately 14.
7 billion euros, or 16.2 billion dollars.
This morning, LVMH and Tiffany announced that they have entered into a definitive agreement, whereby LVMH will acquire Tiffany for 135 dollars per share in cash.
The Tiffany stock is currently up 5.7% at 132.7 dollars. Although some analysts were hoping for it to raise its bid to 140 dollars, market professionals hailed the deal.
"There are limited M&A opportunities of size in luxury generally and barring Rolex or Patek Philippe no other in hard luxury which is the category LVMH needs to bulk up," analysts at Jefferies said.
"We believe Tiffany's brand equity and the strength of the image of its iconic 1837 Blue Box are more valuable than the current financials suggest," the broker pointed out, adding that that LVMH can leverage these to launch a more concerted "attack" on Asian millennials.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
7 billion euros, or 16.2 billion dollars.
This morning, LVMH and Tiffany announced that they have entered into a definitive agreement, whereby LVMH will acquire Tiffany for 135 dollars per share in cash.
The Tiffany stock is currently up 5.7% at 132.7 dollars. Although some analysts were hoping for it to raise its bid to 140 dollars, market professionals hailed the deal.
"There are limited M&A opportunities of size in luxury generally and barring Rolex or Patek Philippe no other in hard luxury which is the category LVMH needs to bulk up," analysts at Jefferies said.
"We believe Tiffany's brand equity and the strength of the image of its iconic 1837 Blue Box are more valuable than the current financials suggest," the broker pointed out, adding that that LVMH can leverage these to launch a more concerted "attack" on Asian millennials.
Copyright (c) 2019 CercleFinance.com. All rights reserved.