Tiffany & Co. (NYSE:TIF) news for Monday about a deal with LVMH (OTCMKTS:LVMUY) has TIF stock taking off.
The positive Tiffany & Co. news is that LVMH is planning to acquire the company. This will have it paying out $135 per share in cash for TIF stock. That sets the total value of the deal at $16.20 billion. The offer from LVMH for TIF stock is also a decent premium over the stock’s closing price of $125.55 on Friday.
Roger Farah, Chairman of the Board of Directors at TIF, says this about the Tiffany & Co. news.
“Following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders.”
A Tiffany & Co. news release notes that the deal already has approval from its Board of Directors. The Board is also advising that shareholders vote in favor of the deal with LVMH.
The Tiffany & Co. and LVMH deal still needs to complete customary closing conditions. That includes getting approval from holders of TIF stock and regulators. If all goes well, the two companies expect the deal to close in the middle of 2020.
TIF stock was up 6.35% and LVMUY was up 2.24% as of Monday afternoon. TIF stock is also up 53.43% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
