France’s LVMH nears offer to buy U.S. fashion jewelry chain Tiffany for about $16.3 billion: sources

France’s LVMH nears offer to buy U.S. fashion jewelry chain Tiffany for about $16.3 billion: sources

A Tiffany & Co. logo design is seen outside a shop in Paris, France, November 22,2019 REUTERS/Gonzalo Fuentes

( Reuters) – French high-end group LVMH ( LVMH.PA) is nearing a deal to purchase U.S. precious jewelry chain Tiffany & Co ( TIF.N) for about $163 billion, sources knowledgeable about the matter told Reuters on Sunday.

Bulgari owner LVMH is nearing an offer to obtain Tiffany for $135 per share, the sources stated, including that an offer might be announced either on Sunday or Monday.

Reuters reported this week that LVMH had persuaded Tiffany to provide it with personal due diligence after it raised its bid to near to $16 billion.

Tiffany earlier this month rebuffed LVMH’s preliminary $120- per-share all-cash deal, arguing it considerably underestimated the company.

Tiffany, founded in New york city in 1837 and included in the 1961 motion picture “Breakfast at Tiffany’s” starring Audrey Hepburn, had had problem with falling yearly sales and earnings considering that 2015, before an earnings turnaround in2017

Fashion jewelry was among the strongest performing areas of the high-end industry in 2018, according to consultancy Bain & Co, which forecast that equivalent sales in the $20 billion international market were set to grow 7%this year.

Under President Alessandro Bogliolo, previous head of style company Diesel and a Bulgari alumnus, Tiffany has actually been developing its e-commerce organisation and is trying to court more youthful consumers with more affordable pendants, earrings and new styles.

The news was initially reported by the Financial Times. Both business did not immediately react to demands for remark.

Reporting by Philip George in Bengaluru and Greg Roumeliotis in New York; Modifying by Will Dunham

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