French luxury group Louis Vuitton Moët Hennessy has made a takeover bid of 13 billion euros for the American jewellery chain Tiffany & Co, but the bid already appears to have been rejected.
Last weekend, the first reports of an attempted bid were published: according to several sources, LVMH had made an offer of 14.5 billion dollars for the American chain that was immortalised by the 1961 film. However, Tiffany appears to have no intent to accept the offer.
LVMH, the owner of well-known luxury brands such as Dior, Louis Vuitton and Veuve Clicquot, has long been exploring opportunities to expand its activities on the American market. The Tiffany chain, with a market value of 12 billion dollars (11 billion euros), fits in perfectly with the picture. The French group has entered the jewellery market in 2011, when it acquired the Italian jeweller Bulgari.
The largest in Europe
Tiffany & Co was founded in 1837 by jeweller Charles Lewis Tiffany. In 1979, the jewellery chain was bought by cosmetics company Avon Products, but five years ago, the company ended up in the hands of investors. Tiffany employs 14,000 people and has an annual turnover of 4.4 billion dollars (4 billion euros).
Should a deal still be reached, it will become one of the largest ever takeovers for Bernard Arnault’s luxury group. With a market value of around 190 billion euros, LVMH is already the most valued company in the eurozone.