LVMH Acquisition Of Tiffany Quote Outflow: $14 Billion 500 Million, All Cash!

In October 27th, "gorgeous" reported that the French luxury goods company LVMH (luwm) group may consider buying the American luxury jewellery brand Tiffany (Tiffany). Bloomberg quoted sources as saying that earlier this month, LVMH group had submitted a non binding initial offer to Tiffany. The two sides negotiated the takeover on Saturday morning. Tiffany has also hired consultants to examine the offer of LVMH group. However, the matter is still in the confidentiality stage, and neither side has made a positive response. See the related report: Biography: LVMH group negotiate Tiffany, force the US market, strengthen the jewelry matrix.
In October 28th, LVMH group confirmed the rumor. The source further revealed that LVMH's offer to Tiffany was $120 per share, and its valuation to US $14 billion 500 million. This offer is 22% higher than Tiffany's $98.55 share at the end of last Friday.
But people familiar with the matter say that LVMH group still needs to raise its offer if it wants to get the deal done. In July 2018, Tiffany's share price hit a high of $139.5 a share.
At 9:30 New York time on October 28th, the stock price of Tiffany rose 28.3% straight after the opening of the NYSE, and the stock price of the deadline was 126.45 US dollars, exceeding the offer of LVMH group, which indicates that the market thinks that the price of Tiffany will be higher.
In the 2018 fiscal year, Tiffany's annual sales volume was $4 billion 380 million and net profit was $560 million. In fiscal year 2019, Tiffany is actively launching a new engine of growth: in order to reach more millennial consumers, brands have launched pendant, earrings and other more popular jewellery products. On the other hand, the brand has achieved initial results in the strategy of launching higher priced diamonds and jewellery products. In addition, Tiffany has just launched the exclusive Tiffany jewelry Makers 1837 Makers in order to better touch the male consumers who are more interested in appearance.
Tiffany's current CEO Alessandro Bogliolo has worked for LVMH group's BVLGARI (Bvlgari) for 16 years. In an interview this July, he made it clear that the Chinese market is one of our most important markets. Chinese luxury consumers do not blindly pursue brands. They want to know the brand story behind them. For Tiffany, increasing our investment in the Chinese market is our top priority. " From September 23, 2019 to November 10th, Tiffany held the largest brand retrospective exhibition in the history of Shanghai Fuxing Art Center, "180 years of creative art and diamond Treasures Exhibition". More than 300 masterpieces of legendary jewellery and treasures all appeared.
The second quarter financial data released in August showed that China's mainland market achieved double-digit growth performance, coupled with the sharp reduction in marketing costs, and the profit in the quarter was better than analysts' expectations. Tiffany