LVMHF - Tiffany: Seeing Fair Valuation As Price Reflects Potential Acquisition
In the world that is increasingly focused on FinTech, electronics, and next generation devices, it appears that the acquisition of Tiffany (TIF), an old-school classical retail brand that has been in existence since 1837, is something from another era. Yet, LVMH (LVMHF), the company in charge of numerous luxury brands, most famous one being Louis Vuitton, appears to think otherwise. In this note, we examine why the transaction makes sense from Tiffany's perspective. Specifically, we see five core positives and two negatives. With the benefits outweighing the positives, we are in favor of the acquisition.