With the brute strength of the French giant on the one hand and the high growth potential of the American jeweler on the other, LVMH's acquisition of Tiffany & Co. looks set to be a positive move for all concerned.
French luxury group LVMH has persuaded U.S. jewelry chain Tiffany & Co to provide it with confidential due diligence after it raised its bid to close to $16 billion, people familiar with the matter said on Wednesday.
Tiffany & Co has asked Bulgari owner LVMH to raise its $14.5 billion acquisition offer, arguing that it significantly undervalues the U.S. jewelry chain, people familiar with the matter said on Wednesday.
Tiffany investors are hoping for a higher offer than LVMH's proposal worth $120 a share. But the deal will require a lot of polish if it is to make sense for the French company’s shareholders, analysts say.
Third-quarter earnings showed that, despite China's economic growth slowing to a three-decade low, shoppers are continuing to spend heavily on luxury - but doing it at home or online, making savings on holiday costs.