Image credit: Tiffany & Co.
Tiffany is seeking around $132 a share as a compromise price. It would also likely want a guarantee that LVMH wouldn’t back out of any revised deal after the Louis Vuitton owner said in September it couldn’t complete the acquisition because of a French government request.
“I think it is likely that LVMH and Tiffany will find a common ground and will agree a lower price for the takeover,” said Luca Solca, an analyst with Sanford C. Bernstein.
As per the report, the behind-the-scenes negotiations may not lead to an agreement. The original price for the deal was $135 per share or about $16 bn in total. By taking control of Tiffany, LVMH would gain better access to the worldwide luxury jewelry market.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
