Tiffany & Co has asked Bulgari owner LVMH to raise its $14.5 billion acquisition offer, arguing that it significantly undervalues the U.S. jewelry chain, people familiar with the matter said on Wednesday.
Tiffany investors are hoping for a higher offer than LVMH's proposal worth $120 a share. But the deal will require a lot of polish if it is to make sense for the French company’s shareholders, analysts say.
After a bumpy few years, luxury brands are re-committing to China's market as a weaker yuan and the US trade war funnel more Chinese high-end spending back home, Tiffany & Co CEO Alessandro Bogliolo said in an interview.
The chief executives of Van Cleef & Arpels, De Beers and Tiffany & Co see strong growth prospects for lab-grown diamonds as fashion accessories but warned that they should not be compared with natural diamonds.
Tiffany & Co’s sales in the United States and Hong Kong took a hit in the latest quarter as Chinese tourists spent less than expected, sending the jewelry maker’s shares down nearly 8 percent on Wednesday.