Bloomberg
Published Nov 25, 2019 04:40AM ET
Updated Nov 25, 2019 06:30AM ET
LVMH’s $16 Billion Tiffany Takeover ‘A Smart Move’: Street Wrap
(Bloomberg) -- LVMH's (PA:LVMH) $16 billion purchase of U.S. jeweler Tiffany (NYSE:TIF) won the applause of analysts and investors, who said the deal allows the French conglomerate to bulk up in jewelry, threatening the dominance in the field of Cartier owner Richemont (SIX:CFR).
“It’s a smart move” that will help LVMH “launch a more concerted attack on the Asian millennial market,” Flavio Cereda, analyst at Jefferies International Ltd., wrote in a note. The deal also will likely lead to renewed speculation about other potential tie-ups among luxury players, including Richemont, privately held Chanel and Gucci-owner Kering (PA:PRTP) SA, Cereda wrote.
LVMH shares, which jumped to a record earlier this month, advanced as much as 2% in Paris and were the No. 2 gainer on France’s CAC 40 Index. The troubled Italian shoemaker Tod’s SpA (MI:TOD), often touted as a potential takeover target, climbed as much as 2% in Milan.
Relief over Sunday’s peaceful elections in Hong Kong and optimism about progress in China-U.S. trade talks also gave a boost to Europe’s luxury stocks on Monday.
Here’s what else analysts are saying about the LVMH-Tiffany deal:
Bryan Garnier, Loic Morvan (Buy on LVMH)
Written By: Bloomberg
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