LVMH Proposes Tiffany Takeover

RAPAPORT... LVMH Mo?<Financial Times. The company is likely to reject the approach, believing it undervalues the business, the UK newspaper added, citing people with knowledge of the matter. The stock peaked at $139.50 in July 2018."[Tiffany's] brand equity, strategic positioning as a gifting authority, [and] brand DNA as a diamond and bridal authority are leading qualities and deserve an exceptional premium," said analyst Oliver Chen at Cowen and Company in a research note Sunday. A takeover would bring Tiffany under the same roof asBulgari, Chaumet and TAG Heuer, adding extra US power to LVMH's portfolio. Itwould also reunite Tiffany CEO Alessandro Bogliolo with his former home: Theexecutive held senior positions at Bulgari and Sephora, another LVMH label, inthe earlier years of his career. Tiffany confirmed the $120-per-share offer Monday, but noted that the parties were not engaged in discussions."Tiffany's board of directors, consistent with its fiduciary responsibilities, is carefully reviewing the proposal, with the assistance of independent financial and legal advisors, to determine the course of action it believes is in the best interests of the company and its shareholders," the jeweler added. Update, October 28, 2019: The latest version of this story contains a comment from LVMH and additional information about the takeover approach. Image: A Tiffany necklace. (Jackie/Flickr)