LVMH is close to buying Tiffany and Co for $16.7bn after the US jeweler managed to secure a higher offer from Bernard Arnault, Europe’s richest man. The latest offer was $135 a share, 12.5 per cent higher than the initial offer of $120 per share, according to people familiar with the matter.
The boards of the two companies will meet on Sunday to approve the latest offer, and the agreement could be announced as early as Monday. The all-cash acquisition valued Tiffany at $16.3 billion and the company had a net debt of about $350 million. Tiffany’s shares edged down 0.78 percent to $125.51 on Friday.
The deal, one of the biggest in Mr Arnault’s career, will bring a new brand to the Frenchman, who owns brands such as Louis Vuitton, Dior and Sephora, which has considerable influence in the US and is popular with Asian customers.
The two sides have been negotiating for weeks since the first offer of $120 from the Luwei-Sans. Last week, the French group raised its offer to $130 a share and was allowed to contact Tiffany’s books for due diligence.