logo
Plus   Neg
Share
Email

Stock Alert: Will LVMH Buy Tiffany Shares?

Luxury jewelry brand Tiffany & Co. (TIF) is scheduled to report fourth quarter earnings today, March 20, before market open.

On average 17 analysts polled by Thomson Reuters expect earnings of $1.77 per share on revenue of $1.36 billion in the fourth quarter.

Friday, Bloomberg reported, citing people familiar with the matter, that French luxury goods giant LVMH, which had agreed to buy Tiffany in November last year for $135 per share or about $16.2 billion in cash, is now considering to buy Tiffany shares on the open market.

The report also said LVMH has discussed the idea with Tiffany's board, which could allow the potential transaction to happen after earnings.

Tiffany stock had surged nearly 30% in October to hit a 52-week high of $134.42, after LVMH proposed the deal.

From early this month, the stock started dipping. Early this week, the company announced closure of many of its stores as coronavirus is spreading to more places.

Thursday, TIF jumped $15.36 or 13.88% before closing at $126.00, which is less than the promised price by LVMH of $135 per share.

In December, the company had announced that preliminary sales in the interim period from November 1, 2019 through December 24, 2019 increased 1-3% compared with the same period last year.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT