The American jeweller Tiffany confirmed on Monday that it had received an “unsolicited” purchase proposal from French luxury giant LVMH and said that it is “carefully reviewing” it, but that there are no negotiations.
“Tiffany confirms today that it has received an unsolicited and non-binding proposal from LMVH Moet Hennessy – Louis Vuitton to acquire Tiffany at $120 per share in cash,” the jewelry store said in a statement.
“Although the parties are not in negotiations, Tiffany’s board of directors (…) is carefully reviewing the proposal” with its advisors to decide which “course of action would be in the best interests of the company and its shareholders.
Tiffany, which was founded in 1837 in New York and today has 300 stores and 14,000 employees worldwide, is “successfully executing its business plan and remains focused on achieving its goal of becoming the ‘Next Generation Luxury Jeweller.
The company shelled out Goldman Sachs and Centerview Partners as financial advisors and Sullivan & Cromwell as legal advisors.
Following press reports advancing the possible deal this weekend, LVMH also confirmed on Monday that it has engaged in “preliminary discussions” over a hypothetical acquisition of Tiffany.
“There is no certainty at this time that these discussions could lead to an agreement,” said in a brief note the French firm, owner of jewelry brands such as Chaumet and Bulgari, which could seek more presence in the U.S. market.
Minutes before the opening of the Wall Street session, Tiffany’s shares skyrocketed in previous electronic transactions by almost 30 %, to a value of $128 per share.
Last Friday, the jewelry store closed at $98.55 after a good day.