LVMH "Will Still Buy" Tiffany for $16.2bnJune 08, 20
(IDEX Online) - French luxury conglomerate LVMH is now expected to go ahead as planned with its $16.2bn acquisition of US jeweler Tiffany & Co, after days of fevered speculation.
Reports in the fashion Bible Women's Wear Daily (WWD) suggested late last week that LVMH MoÃ«t Hennessy Louis Vuitton could use COVID-19 and the George Floyd aftermath to negotiate down a price agreed last November.
But current indications are that LVMH has been deterred by legal hurdles from seeking a discount.
LVMH chief executive Bernard Arnault had reportedly been seeking ways to lower Tiffany's cash price of $135-a-share.
The proposed deal would help consolidate LVMH's position in hard luxury - high-end jewelry and timepieces - following its acquisition of the Italian watchmaker Bulgari for $5.2bn in 2011.
New York-based Tiffany reported a $4.4bn of sales for last year, matching its record high in 2018.