Oct 28, 2019

LVMH eyes possible Tiffany & Co. takeover

Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

LVMH confirmed Monday that it has approached Tiffany & Co. about a possible takeover.

Why it matters: This is as much about trade war opportunism as it is about diamond bracelets in little blue boxes. Tiffany has been hit hard by a decrease in Chinese tourism to the U.S., and it has been trying to play catch-up by opening more locations in China. It has also assumed the added costs of new Chinese tariffs on U.S.-made jewelry.

  • Pricing remains unclear, although reports are that LVMH is contemplating a $120 per share bid that would value Tiffany at around $14.5 billion.
  • That would be a 22% premium to where Tiffany closed on Friday, but traders expect a richer bid — with shares climbing past $130 at today's open.
  • Tiffany's all-time high was $137.56, back in July 2018.

The bottom line: LVMH is synonymous with luxury, and it would use Tiffany to bolster a relatively small jewelry business whose current crown jewel is Bulgari.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

New Zealand now has only one novel coronavirus patient in hospital and just 22 active cases in the country, top health official Ashley Bloomfield confirmed at a briefing. He's "confident we have broken the chain of domestic transmission," with no new cases reported for most of May, he added.

By the numbers: Brazil on Monday recorded for the first time more deaths from the novel coronavirus in a single day than the United States, Reuters notes. Brazil reported 807 deaths from COVID-19 in the past 24 hours, compared to 620 in the U.S. for the same period.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 10:30 p.m. ET: 5,494,287 — Total deaths: 346,229 — Total recoveries — 2,31,722Map.
  2. U.S.: Total confirmed cases as of 10:30 p.m. ET: 1,662,302 — Total deaths: 98,218 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 38 mins ago - Politics & Policy

Pro-Hong Kong resolution at British university fails after Chinese student opposition

A protester waves the Hong Kong colonial flag during a July 2019 demonstration against the extradition law to China. Photo: Ivan Abreu/SOPA Images/LightRocket via Getty Images

A student resolution expressing support for the Hong Kong pro-democracy movement was voted down at the University of Warwick in England, after opposition from mainland Chinese students.

Why it matters: The charged politics of China's actions in Hong Kong are spilling over to university campuses thousands of miles away, raising questions for students and university administrators about how to protect democratic values.