LVMH raising its Tiffany offer to 15,8 billion dollars

The French luxury group LVMH (LVMH) is raising its Tiffany (TIF) offer to 15,8 billion dollars, write the Reuters and Financial Times. According to the news, the new takeover offer is close to 130 dollars a share. This would give the market value of Tiffany to 15,8 billion dollars including the 350 million net debt.

This new offer would mean that the LVMH would be able to have more information about the financials of Tiffany. On the other hand, they have not entered an exclusivity agreement.

The French luxury group LVMH is trying to expand to the US markets with the offer of the 1837 founded US company. Tiffany´s shares has been increasing during the talks and yesterday the closing was down 0,14 % to 123,33 dollars in New York.

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Facebook to move to Hudson Yards, New York

The US tech company Facebook (FB) is increasing its presence in New York. The company has agreed to rent three towers totalling 139.000 m2 in the three developing buildings in the west side area of Manhattan, Hudson Yards. According to the information, the employees are moving already next year to the new offices.

The Hudson Yards has got several real-estate certifications for its sustainable buildings, materials and public transport. The area has already Leed Platinum for Hudson Years 10 and the Eastern Yards has got Leed- Neighborhood Development Gold (Leed ND).

The area is expected to gain more than 20 million visitors annually.  The area is having over 14 acres of public plazas, gardens and over 100 different shops and high-end retailers. The shops include for example luxury brands like Dior, Tiffany and Watches of Switzerland.

Facebook shares closed down 0,02 % to 193,15 dollars in New York on Thursday.

 

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Tiffany: Centerview Partners and Goldman Sachs are financial advisors

Tiffany & Co (TIF) has today made a press release of the takeover bid of the French luxury group LVMH. According to the release, the company says it is carefully reviewing the proposal, which is unsolicited and non-binding.  LVMH Moet Hennessy – Louis Vuitton takeover bid is $120 per share in cash.

– While the parties are not 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. Tiffany shareholders need take no action at this time, the company says.

Centerview Partners and Goldman Sachs are serving as financial advisors to Tiffany and Sullivan & Cromwell is serving as Tiffany’s legal advisor, the release states.

LVMH has also published a short stock exchange release saying that according to the market rumours, the French group has made an offer to Tiffany, but the outcome will be seen later.

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Microsoft and Tiffany lifted US stocks in the opening

The tech company Microsoft (MSFT) and luxury company Tiffany (TIF) lifted the US stocks in the opening on Monday. Microsoft´s deal with the Pentagon cloud computing service, the value of over 10 billion dollars, raised the company shares. Microsoft was up 2,23 % and was trading at 143,87 dollars in New York.

The shares of the luxury house Tiffany rose over 30 % in the opening, after the French luxury group LVMH (LVMH) has made 120 dollar a share takeover bid of the US company during the weekend.

Tiffany´s shares opened at 127,65 dollars and was trading at 129,95 dollars after some analysts have raised the target price and upgraded their recommendations. Some market analysts think that Tiffany may get also interest from luxury rivals such as the Swiss Richemont (CFR) and the French Kering ( KER).

Richmond was also trading up, 2,93 % at 77,22 francs in Zurich, while the French Kering was trading down 0,66 % at 510 euros in Paris.

S&P 500 -index traded record high, while Nasdaq and Dow Jones are still some behind from their peaks. S&P 500 -index was up 0,5 % to 3039 points, Dow Jones was up 0,51 % to 2709 points and Nasdaq 0,84 % to 8312 points.

In London, where the Brexit-delay is now granted to the end of January 2020 if needed, the FT-SE 100 -index was trading also up 0,15 % to 7335 points. The UK Parliament will debate today about the elections and the possible days for it.

 

 

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Tiffany gets LVMH bid of 120 dollars a share

The US luxury house Tiffany & Co (TIF) has received a takeover bid from the French luxury group LVMH (LVMH). The bid is about 120 dollars a share, valuing the Tiffany to close to 14,5 billion dollars. The closing price of Friday was 98,55 dollars, which means the bid is about 22 % more than the market price.

According to Wall Street Journal, the French luxury group could have to rise the bid if they want to buy the enlargement to the US markets.

 

 

 

 

 

 

 

 

 

 

Business Finance

LVMH is considering Tiffany takeover – Bloomberg

The world largest luxury company, the French LVMH (LVMH) is considering a takeover of the US luxury company Tiffany & Co (TIF). The takeover, according to Bloomberg, would increase the French company´s presence in the US markets, but according to the news, there is no guarantee of the possible deal.

Tiffany, which was founded in 1837 in Manhattan, is one of the leading luxury houses in the US with the annual turnover of 4,4 billion dollars and net earnings 586 million dollars in 2018. The company has over 300 brand stores globally for its jewellery, timepieces, accessories and fragrances.  Nearly half of its sales comes from the US markets, while Asia counts about 30 %, Japan 15 % and Europe 11%.

The market cap of Tiffany is about 11,9 billion dollars, while the French rival LVMH is about 190 billion euros.

The French company LVMH has been investing in the US markets and last week the company opened its Louis Vuitton factory in Texas. LVMH´s other brands in the luxury jewellery category are for example Bulgari, Dior, Hublot and Tag Heuer.

Both companies enhance the luxury and sustainability integration and for example Tiffany has launched a Diamond Source Initiative, where customers can know the geographical region of their individually registered diamonds.

 

 

 

 

 

 

 

 

 

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Tiffany to open more stores in China – Bloomberg

The US jewellery company Tiffany (TIF) is opening more stores in mainland China, writes Bloomberg today. According to the CEO Alessandro Bogliogo the company has seen ” a big increase in sales in mainland China”.

According to Tiffany, Chinese consumers have decreased somewhat the spending overseas but continue shopping in mainland. Also the ongoing trade talks between the US and China have had their own impact in the spending.

The company is to published its third quarter figures in late October. Today the company shares were trading down -0,61% at 92,27 dollars in New York.

 

 

 

 

 

 

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