- AFP
-
|
French luxury giant LVMH has not ruled out
raising its initial 14.5 billion dollars offer to take over US jewelers Tiffany,
sources close to the deal told AFP on Friday.
The two groups resumed their stalled talks this week after Tiffany’s board
asked LVMH to reconsider its bid, which the sources said Tiffany believed was
too low.
The owner of Louis Vuitton, Dior and Moet & Chandon revealed late last
month it was exploring a takeover of Tiffany, most famous for its fine
diamonds and luxury silver wedding and engagement rings.
The deal would be among the largest ever for LVMH, giving it a much bigger
presence in the United States.
“Raising the price is more than feasible,” said one of the sources.
A second source, however, said it was unlikely the new offer would stretch
as far as the 135-140 dollars per share sought by Tiffany’s board.
LVMH’s initial offer was for 120 dollars per share, which values the company at
around 14.5 billion dollars.
If LVMH raises its offer, however, the sources said Tiffany would be
prepared to enter exclusive negotiations with the French group — which would
give LVMH access to the accounts of its target.
Both sides were said to be eager to reach a deal.
Contacted by AFP, LVMH did not wish to comment. Tiffany did not initially
respond to a request for comment.
Tiffany, founded in 1837 and headquartered on glamorous 5th Avenue in New
York next to Trump Tower, is the most iconic of US luxury brands, an image
reflected in the “Breakfast at Tiffany’s” novella by Truman Capote, made into
a film with Audrey Hepburn in 1961.
