Tiffany & Co. (NYSE:TIF) saw a major increase to TIF stock on Monday following a takeover offer from LVMH Moet Hennessy.
A Tiffany & Co. news release announcing the deal says that the offer values TIF stock at $120 per share. That’s a 22.78% premium over the stock’s closing price of $98.54 on Friday. It’s also worth mentioning that the offer is in cash.
So how exactly does Tiffany & Co. plan to respond to this offer? The company says the offer is unsolicited and that it doesn’t have a final decision yet. However, it is working with independent financial and legal advisors to go over the offer. TIF says that it will do whatever is in the best interest of its shareholders.
The Tiffany & Co. news release notes that shareholders of TIF stock currently don’t have to take any kind of action. It also says that it is still focused on its goal of becoming “The Next Generation Luxury Jeweler.”
The current offer for TIF may seem tantalizing, but it’s also one the company may not accept. Cowen analyst Oliver Chen argues that it would take at a minimum offer of $160 per share before Tiffany & Co. accepts a takeover.
Following the Tiffany & Co. news about a possible takeover, Deutsche Bank put out an upgrade for TIF stock. This has the firm placing a “Buy” rating on the stock and a new price target of $130 per share.
TIF stock was up 30.34% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.