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Increased LVMH Bid Wins Tiffany Backing

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Published: June 22nd, 2020
The world's biggest luxury goods seller will get bigger still after agreeing a $16.2 billion deal for the storied U.S. jeweler.

LVMH Moët Hennessy Louis Vuitton SE has reached a deal to buy storied U.S. jewelry chain Tiffany & Co. (TIF) after improving its offer to $16.2 billion.

The agreement, announced Monday, Nov. 25, values the target at $135 per share, up 12.5% from an initial bid of $120 per share that was rejected but proved sufficient to form the basis for talks.

The new offer equates to a 7.5% premium to Tiffany’s closing price of $125.51 on Friday and is more than 50% higher than its share price of $98.55 on Oct. 25, the day before reports of LVMH’s interest first emerged.

“Following a strategic review that included a thoughtful internal process and expert external advice, the board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders,” said Tiffany Chairman Roger N. Farah in a statement.

LVMH, the world’s biggest seller of luxury goods, will add New York-based Tiffany to its Watches & Jewelry division, where it will sit alongside brands including Bulgari, TAG Heuer and Chaumet. The purchase is the biggest ever by LVMH, which has been a regular buyer of luxury brands and more recently luxury experiences, with this year’s $2.6 billion acquisition of hotelier and travel group Belmond Ltd.

Editor’s note: The original version of this article, including advisers and other details, was published earlier on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.

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