French luxury group LVMH nears deal to buy Tiffany & Co for $22.8 billion
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People walk past US luxury jewellery chain Tiffany & Co's in Paris on Oct 29, 2019.
PHOTO: AFP
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NEW YORK (REUTERS) - French luxury group LVMH is nearing a deal to buy US jewellery chain Tiffany & Co for about US$16.3 billion (S$22.8 billion), sources familiar with the matter told Reuters on Sunday (Nov 24).
Bulgari owner LVMH is nearing a deal to acquire Tiffany for US$135 per share, the sources said, adding that a deal could be announced either on Sunday or Monday.
Reuters reported this week that LVMH had persuaded Tiffany to provide it with confidential due diligence after it raised its bid to close to US$16 billion.
Tiffany earlier this month rebuffed LVMH's initial US$120-per-share all-cash offer, arguing it significantly undervalued the company.
Tiffany, founded in New York in 1837 and featured in the 1961 movie "Breakfast at Tiffany's" starring Audrey Hepburn, had struggled with falling annual sales and profit since 2015, before a revenue turnaround in 2017.
Jewellery was one of the strongest performing areas of the luxury industry in 2018, according to consultancy Bain & Co, which forecast that comparable sales in the US$20 billion global market were set to grow 7% this year.
Under Chief Executive Alessandro Bogliolo, former head of fashion firm Diesel and a Bulgari alumnus, Tiffany has been building up its e-commerce business and is trying to court younger shoppers with more affordable pendants, earrings and new designs.
The news was first reported by the Financial Times. Both companies did not immediately respond to requests for comment.
