TIF - Can LVMH Provide Tiffany & Co. Investors With Much-Needed Growth?
It was recently announced that the luxury brand LVMH Moet Hennessy Louis Vuitton SE (OTC: LVMHF) has shown interest in the jeweller Tiffany & Co. (NYSE: TIF). Last month, it was confirmed by Tiffany that they are currently reviewing an acquisition offer of $14.5 billion -- presented by LVMH.
The offer, which was valued at $120 per share, was a modest offer considering Tiffany's stock closed at $98.55 that previous on Friday -- a 22% premium. Once investors learned of the bid by LVMH, shares popped up to $129.72 per share -- an impressive rise of $31.17 over just one weekend.
Many shareholders would welcome a takeover. Tiffany has lost nearly a third of its stock value over the past year and a half, despite setting all-time highs in July 2018. Tiffany's global sales decreased 3% through the first half of 2019 and the company has long welcomed more exposure in Europe and Asia — something LVMH can provide.