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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Report: LVMH agrees to buy Tiffany & Co. for $18.5 billion

Photo: Nicolas Economou/NurPhoto via Getty Images

France's LVMH has agreed to buy U.S. luxury jeweler Tiffany & Co. for around $18.5 billion, or $135 per share, according to CNBC's David Faber.

Why it matters: This deal is largely about trade war opportunism, as Tiffany has been hammered by decreased Chinese tourism to the U.S. It's tried to offset that by opening more stores within China, but it's been hampered there by new Chinese tariffs on U.S.-made jewelry.

Go deeperArrowNov 24, 2019

Pre-Thanksgiving Merger Monday sees over $60 billion in announced deals

Illustration: Sarah Grillo/Axios

It's been a while since we've had a full-fledged Merger Monday, but today we've seen over $60 billion in announced deals.

Why it matters: This isn't about a macro economic shift. It's about bankers and boards wanting to enjoy their Thanksgiving breaks, without constant cell phone pings.

Go deeperArrowNov 25, 2019

KKR agrees to buy defense component manufacturer Novaria Group

Illustration: Lazaro Gamio/Axios

KKR agreed to buy Novaria Group, a Texas-based manufacturer of components for the aerospace and defense industries, from Rosewood Private Investments and Tailwind Advisors.

Why it matters: This is the latest example of KKR buying an industrials company and then giving employees equity, something that has not caught on with many other private equity shops.

Go deeperArrowNov 25, 2019