LVMH wants to buy Tiffany's diamonds for 13 billion euros

The French luxury group has made an offer to buy the most famous jewelers in New York.

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At Tiffany & Co Headquarters, New York, Sunday, October 27th. JOHANNES EISELE / AFP

LVMH offers Tiffany & Co to put the ring on his finger. The world's leading luxury goods company confirmed Monday (October 28th) that it has " engaged in preliminary discussions With the American group, known for its wedding bands and engagement rings. As it stands, this offer is "Non-binding", said sources close to the case, Sunday, October 27, after the revelation of this project by Bloomberg, Saturday, October 26.

Since then, numerical information circulates. LVMH would be ready to put on the table 14.5 billion dollars, or 13 billion euros, says the Anglo-Saxon press. The group owned by Bernard Arnault propose to buy 100% of the capital at a price of $ 120 per share, according to the business daily Wall Street Journal. This is a 30% premium over the price at which Tiffany shares were trading on Wall Street in early October when the preliminary offer was filed.

Bernard Arnault's group, whose sales reached 46.7 billion euros in 2018, would then sign the largest of its acquisitions since its creation in 1987. Although the two parties have not yet started exclusive negotiations , usual prior to the signing of an agreement between listed groups, financial analysts are already commenting on the transaction. The team led by Luca Solca in the US firm Bernstein highlights the relevance of this project, in a note written Sunday, October 27.

Disappointed shareholders

Mr. Arnault would then offer the first brand of luxury American. Known for its diamonds mounted alone, the brand founded in 1837 is an icon of chic New York, that acted actress Audrey Hepburn, in 1958, in the film Diamonds on sofa, by Blake Edwards, adaptation of the novel by American Truman Capote, dreaming in front of the windows of the historic Ve Avenue. Since then, always with feverishness, the Americans and the tourists passing through Manhattan offer themselves their little blue boxes wrapped in satin. Tiffany is one of the few world-renowned jewelry brands; its sales reached $ 4.4 billion in 2018. But, according to Mr. Solca, it has not yet demonstrated "All its potential".


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