By Kuldip K. Ambastha and Anil K. Ambastha
On October 28, 2019, New York-based Tiffany & Co.’s stock (TIF) jumped 31.6% for a record one-day gain. The stock surged due to the announcement of a potential $14.5 billion (USD) acquisition bid from LVMH Moët Hennessy (LVMH). LVMH is a Paris-based French company headed by the third-richest billionaire in the world with an estimated net worth of about $102 billion USD, Bernard Arnault, and is traded in the over-the-counter (OTC) market with a stock ticker symbol of LVMUY. The company owns various brands including Louis Vuitton, Christian Dior, and Bulgari. The company offered to acquire Tiffany & Co., a 182-year old luxury jewelry retailer, for a non-binding, all-cash price of $120 per share, to expand into the U.S. market and increase its presence in the luxury jewelry space. Tiffany & Co. is considering this unsolicited offer due to its fiduciary duty to do so, and it is likely that other bidders may also emerge in the near future.
Keywords – Tiffany & Co., TIF, LVMH Moët Hennessy, LVMH, LVMUY, Bernard Arnault, Louis Vuitton, Christian Dior, Bulgari, U.S., France, luxury, jewelry, retail, M&A, mergers, acquisitions, over-the-counter, OTC, billionaire.
Disclosure – The principals and clients of Ambastha Financial LLC do not have any position in TIF or LVMUY.
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