Tiffany and Co has asked Bulgari owner LVMH to raise its $14.5 billion acquisition offer, arguing that it significantly undervalues the US jewellery chain, people familiar with the matter said on November 6.
LVMH remains engaged and is considering a new offer, according to the sources. The exact numbers being discussed could not be learned. Sources have previously said Tiffany’s board saw a price level of $140 per share, which its shares reached last year, as key to reaching a deal. The sources asked not to be identified because the negotiations are confidential.
Jewellery was one of the strongest performing areas of the luxury industry in 2018, as per Bain & Co, which forecast that comparable sales in the $20 billion global market were set to grow 7 pc this year. 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. Under Chief Executive Alessandro Bogliolo, former head of fashion firm Diesel and a Bulgari alumnus, Tiffany has been building up its e-comm business, and is trying to court younger shoppers with more affordable pendants and earrings.
However, LVMH believes Tiffany needs to spend more on reinventing and marketing its brands, and that it can achieve this only as a division of LVMH, according to the sources.