|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||394.65 - 403.10|
|52-week range||278.70 - 439.05|
|Beta (5Y monthly)||0.89|
|PE ratio (TTM)||27.88|
|Earnings date||22 Jul 2020 - 27 Jul 2020|
|Forward dividend & yield||4.80 (1.19%)|
|Ex-dividend date||07 Jul 2020|
|1y target est||319.92|
Paris, Tuesday, June 30th 2020At the Annual Shareholders’ Meeting of LVMH Moët Hennessy Louis Vuitton held on Tuesday, June 30th 2020, approval was given for the payment of a dividend for financial year 2019 of 4.80 Euros per share.Taking into account the 2.20 Euros paid on Tuesday, December 10th 2019, the balance of 2.60 Euros will be paid on Thursday, July 9th 2020\. The last trading day with dividend rights is Monday, July 6th 2020.LVMHLVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia, Ao Yun and Château du Galoupet. Its Fashion and Leather Goods division includes Louis Vuitton, Christian Dior Couture, Celine, Loewe, Kenzo, Givenchy, Pink Shirtmaker, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana, RIMOWA, Patou and Fenty. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot. LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin d’Acclimatation, Royal Van Lent, Belmond and Cheval Blanc hotels.LVMH CONTACTS Analysts and investors Chris Hollis LVMH + 33 1 44 13 21 22 Media Jean-Charles Tréhan LVMH + 33 1 44 13 26 20 MEDIA CONTACTS France Brune Diricq / Charlotte Mariné Publicis Consultants + 33 1 44 82 47 20 France Michel Calzaroni / Olivier Labesse / Hugues Schmitt / Thomas Roborel de Climens DGM Conseil + 33 1 40 70 11 89 Italy Michele Calcaterra, Matteo Steinbach SEC and Partners + 39 02 6249991UK Hugh Morrison, Charlotte McMullen Montfort Communications + 44 7921 881 800 US James Fingeroth, Molly Morse, Anntal Silver Kekst & Company + 1 212 521 4800 China Daniel Jeffreys Deluxewords +44 772 212 6562 +86 21 80 36 04 48 Attachment * 2019 DIVIDEND VA
The fallout from the coronavirus crisis will weigh on LVMH's earnings for some time yet, though there were some signs of recovery this month, executives at the world's biggest luxury goods group said on Tuesday. Second quarter earnings at the owner of Louis Vuitton and other brands will be hit particularly in Europe and the United States, Chairman Bernard Arnault told a shareholder meeting, conducted online. "We can only hope at this point for a gradual recovery," Arnault told investors, adding that the second half of the year looked better.
Seafolly Pty Ltd, an Australian swimsuit maker part-owned by French fashion giant LVMH Moet Hennessy Louis Vuitton SE, appointed administrators on Monday citing a sales downturn from the coronavirus, the latest casualty of the health crisis in the country's retail sector. "Seafolly made the appointment because of the crippling financial impact of the COVID-19 pandemic," said Scott Langdon and Rahul Goyal, of KordaMentha Restructuring, in a statement. Seafolly's move into adminstration points to gaps in various corporate relief packages set up by the Australian government during the shutdown, such as a wage subsidy scheme and a deferral of certain financial reporting obligations to help companies stay afloat.
(Bloomberg Opinion) -- Gucci owner Kering SA has shaken up the relatively staid world of the corporate boardroom by appointing Emma Watson, the British actress, as a non-executive director. But the recruitment of the Harry Potter star isn’t celebrity window dressing: Watson is a champion of sustainable fashion, so her advice to the French luxury behemoth will be valuable.Her every move is followed by the world’s media, and what she does will be associated with Kering from now on. She is a vocal equality campaigner, as was seen this week with her tweets of support for trans people.But Watson’s values seem to gel with those of the company, and they certainly reflect those of the younger consumers with whom Kering is eager to connect. The owner of the Yves Saint Laurent and Bottega Veneta brands has long put sustainability at the heart of its corporate strategy. Each year it produces an environmental profit-and-loss account that calculates the cost of the damage to the planet attributable to the company and its supply chain. For the past decade, green targets have been included in criteria for measuring performance and calculating executive bonuses.Increasingly, many luxury shoppers care deeply about these issues. Younger generations place as much importance on what brands stand for as they do on their products. With people under 45 generating all of the growth in the industry, staying in tune with them is crucial.Indeed, this is all part of a new mood of inclusivity in luxury, whether that’s embracing different cultures, sexuality or body shapes. Having diverse views on corporate boards can help promote this, and prevent some of the mistakes that have engulfed houses in the past, including at Gucci, which withdrew a sweater last year after it was criticized for resembling blackface.Kering already had an impressive number of women on its board, and its latest appointments have further improved its diversity. Joining Watson will be Jean Liu, president of ride-hailing service Didi Chuxing, and Tidjane Thiam, who was the only Black chief executive officer among the biggest European banks when he ran Credit Suisse Group AG.Rival LVMH has also taken steps to better reflect the values of its younger customers. Rather than hiring a fashion designer to create its first new fashion house for 30 years, it brought Rihanna’s Fenty label — which includes makeup and clothing — into its stable. The pop star has put diversity, including race, gender and body shape, at the heart of all her style and beauty endeavors. Her arrival also shows that, in the Instagram age, actresses and singers have the same fashion cred as designers.With Kering and LVMH taking the lead on sustainability and diversity, expect others in the industry to follow suit.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- There’s a new bling king in town. From selling cut-price tracksuits and trainers at his Sports Direct shops, Mike Ashley is now accumulating a portfolio of holdings in luxury-goods brands.The British billionaire’s Frasers Group Plc said late on Friday it had a acquired an exposure worth as much as 97 million pounds ($122 million) to German fashion house Hugo Boss AG through shares and derivative positions.The interests in Boss, known for its sharp suiting, represents Ashley’s second foray into luxury goods in the past six months. In February, Frasers, which includes the Sports Direct chain, House of Fraser department stores and Flannels luxury boutiques, spent about 20 million pounds acquiring a 12.5% stake in upmarket accessories maker Mulberry Group Plc, best known for its iconic Bayswater bag.The strategy for both investments is the same; securing close commercial relationships with an investment interest. They’re meant to buttress Ashley’s goal of turning House of Fraser into the “Harrods of the high street.” While this has been much maligned, the brash retail mogul may just have his chances if the company can position itself well coming out of the coronavirus lockdown, especially with rival Debenhams Plc significantly weakened.Like Mulberry, Hugo Boss is an important brand for both House of Fraser and Flannels, which also sells Burberry and Balenciaga. The companies have worked together as commercial partners for some time.There may be reasons for striking now.Hugo Boss shares have lost half of their value in the past year, underperforming the Bloomberg Intelligence luxury peer group, and the company faces a management shake-up just as Chief Executive Officer Mark Langer’s sensible turnaround loses steam. Langer, a long-serving executive who took the top job in 2016, will leave on Sept. 30. The company said recently it was in talks with former Tommy Hilfiger Group CEO Daniel Grieder to be his successor.If Grieder is appointed, it’s not clear how he will revive Hugo Boss’s fortunes. One option could be to follow the luxury-industry trend of cutting back on distribution to retailers not considered upmarket enough for one’s brands. If Grieder were to seek to rationalize supply to House of Fraser, then Ashley, as a big holder, would be able to make his views known.Meanwhile, the Marzotto Italian textile-manufacturing family, a long-time shareholder in Hugo Boss, increased its stake from 10% to 15% in February, sparking speculation the company could be taken private. If this were to happen, Ashley would have a seat at the table too.As with his investments in high street retail, Ashley’s dabbling in luxury has been distinctly mixed. I argued in February that he couldn’t lose with the stake in Mulberry. But the British brand has since been hurt by the lockdown, and parted company with its star designer Johnny Coca, who has now joined Louis Vuitton. Shares in Mulberry have fallen 17% since Ashley took his stake.While Ashley’s interest in Boss may be strategic, it is not without risk. Hugo Boss still generates the majority of its sales from clothing, not the best place to be in a pandemic as many consumers essentially skip a fashion season. What’s more, demand for its smart tailoring in business attire may be permanently damaged by a shift to working from home. Its new management and design teams will have to work hard to offset that by accelerating Langer’s push into younger, more casual clothing, and bolstering revenue from accessories, which are proving more resilient.Ashley’s moves usually raise eyebrows, but he often takes the right strategic direction. With his attention now focused on brands that are far from cut price, Burberry Group Plc has several potentially alluring characteristics: It’s in a turnaround, its shares have dipped and it’s a Flannels favorite. The British luxury house could yet fit in Ashley’s shopping bag.But for now, he will be hoping that his timing for striking at Hugo Boss suits him better than Mulberry did.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- A Texas-based private equity firm and a fund backed by luxury retailer LVMH added $850 million to the surge of investment in Jio Platforms Ltd., the telecommunications and digital services business of Reliance Industries Ltd., India’s largest company.TPG Capital agreed to pay 45.5 billion rupees ($600 million) for a 0.93% stake in Jio Platforms, while L Catterton, the $20 billion consumer-focused private equity firm, took a 0.39% stake for 18.9 billion rupees, Reliance said in separate statements dated June 13.The deals add to the list of well-known investment firms joining billionaire Mukesh Ambani’s bid to pay down debt at his Reliance flagship, raising the total invested to about $13.7 billion since April. Ambani has also drawn investors with a plan to shift the conglomerate toward growth in e-commerce, online entertainment and digital payments, away from a dependence on revenue from oil refining and petrochemicals.“I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses,” Ambani said in the statement dated June 13.Ambani’s digital unit, whose equity value is now about $65 billion, has sold more than 22% in stakes to buyers including Facebook Inc., KKR & Co., Silver Lake Partners and General Atlantic. Jio is expected to use its roughly 400 million wireless phone subscribers as the cornerstone of an e-commerce and digital services business in the world’s second-biggest country.The slew of investments have sent Reliance Industries shares soaring more than 80% since late March, and the stock is trading near a record high.Ambani, Asia’s richest man, has also been plowing more of his own fortune into the company. Reliance Industries concluded its $7 billion rights offering earlier this month.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The momentum from the killing of George Floyd should be used to create educational vehicles, said Rodney Williams.
U.S. luxury jeweler Tiffany & Co <TIF.N>, which is being bought by France's LVMH for $16 billion, said on Tuesday it had amended some of its debt agreements to gain more financial leeway amid the coronavirus pandemic after its quarterly sales sank 44%. Tiffany shares were up more than 2 percent in early trading.
(Bloomberg Opinion) -- There’s a long-running joke among my team’s deals writers and editors that in the corporate world, all roads eventually lead to mergers. Whatever is happening on the outside or on Wall Street — economic downturns, upturns, elections, currency fluctuations, CEO departures, CEO arrivals, good earnings, bad earnings, you name it — the case can somehow always be made, almost comically, that it’s an impetus for more corporate tie-ups. Warren Buffett would say that’s thanks to all the fee-hungry bankers playing to CEOs’ vain propensity for empire-building. Others say it’s the animal spirits at work.Whatever the case, the global pandemic is giving businesses plenty of reasons to get back to dealmaking. Yes, even social distancing may draw some companies closer together. How they do it will just require a bit more ingenuity in a post-handshake, post-Covid-19 world.As drugmakers race to develop vaccines and treatments for the virus, the pharmaceutical industry is an obvious place to expect renewed M&A activity. Already, drug giant AstraZeneca Plc has made a preliminary takeover approach to Gilead Sciences Inc., Bloomberg News reported Sunday, citing people familiar with the matter. That’s a potential $100 billion transaction. Executives from Johnson & Johnson also said in April that one of their top priorities is finding M&A that enhances its pipeline, citing the drugmaker’s financial strength. The company has $18 billion of cash and equivalents, and Ebitda exceeds debt.It was the pharma industry that kicked off the global megamerger wave last time around, in early 2014, as companies including AstraZeneca participated in a game of merger musical chairs. Soon enough, just about every industry had joined the deal frenzy, which lasted until earlier this year. It might have kept going had the virus not arrived.M&A globally is down 50% this year after the coronavirus quite literally brought the economy to a halt. But stay-at-home orders have been lifting across Asia, Europe and the U.S. And now that New York City — the unofficial headquarters of the M&A market — is beginning to reopen, deals that were in the works previously may pick up where they left off. Those are “low-hanging fruit” for bankers to try to get done, said Eric Becker, who manages the AltShares Merger Arbitrage ETF at Water Island Capital, a firm with $2.5 billion under management. “Those were situations where they were still able to hit the golf course and have the handshakes and look at each other face to face.”The M&A handshake may be over, but tech-savvy companies are already embracing the deal-by-video-chat method. Verizon Communications Inc. acquired videoconferencing business BlueJeans Networks for about $400 million in April, and though those talks began last year, the deal had to be finalized over BlueJeans video calls. Intel Corp. also bought Moovit Inc., an Israeli public-transit mapping startup, for $900 million last month. Moovit’s CEO told one publication that the deal came together over Zoom video calls.Not only could more companies use videoconferencing tools to do M&A, other tech-affiliated companies could copy Verizon by acquiring a service like BlueJeans to round out their business software offerings. That’s if working from home is going to be more common even after Covid-19 gets under control. And for deals in which physical assets and property are key, investors have cited the prospect of drones being used to conduct due diligence and avoid unnecessary travel and virus risks. Whether that’s a practical solution remains to be seen. Companies that announced deals just before the virus struck may experience buyer’s remorse. Tiffany & Co.’s acquirer, LVMH Moet Hennessy Louis Vuitton SE, is reportedly looking to pay a lower price than the $16.2 billion it offered in November, but Tiffany, of course, doesn’t want to renegotiate the terms. The spread between Tiffany’s share price and LVMH’s bid is wide at 10%, signaling investor apprehension that the deal will collapse.But then there are deals that make all the more sense because of the crisis. Uber Technologies Inc. is trying to acquire Grubhub Inc. to consolidate the market for food-delivery services as demand surges. Even as restaurants reopen, diners in heavily populated areas may still be reluctant to eat out. Becker also cited an ongoing trend of regional bank acquisitions, as smaller banks require better online capabilities and larger banks seek a deeper community presence.Vulnerable companies may already be bracing for activist shareholder interventions and unsolicited bids. The law firm K&L Gates LLP said that between March and mid-April more than two dozen U.S. public companies adopted so-called poison pills — more than the total number of S&P 500 companies that had these types of takeover protections in place last year. Private equity firms are also likely to be gearing up for buyouts. Such campaigns run the risk of igniting political and public scrutiny in a year marked by soaring unemployment and social activism over inequality. Other opportunistic buyers may soon come out of the woodwork. Amazon.com Inc., which isn’t a frequent borrower, aroused suspicion when it issued $10 billion of debt in recent weeks. Oracle Corp. also raised $20 billion. “When you start seeing some of these deep-pocketed buyers doing these large debt deals, it makes me think there's pent-up demand for M&A,” Becker said. One caveat: Regulators are ostensibly taking a tougher stance against potentially anti-competitive takeovers by tech giants. Even so, companies that see President Donald Trump losing the November election may want to act before less-merger-friendly Democrats take charge.There’s also the question of what Warren Buffett will do with Berkshire Hathaway Inc.’s $137 billion of cash. I suggested last week that Costco Wholesale Corp. should be its next bulk purchase. Wherever the crisis goes from here, all roads still lead to deals. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Société Européenne with share capital of 151,508,201.70 euros Registered office: 22 avenue Montaigne – 75008 Paris, France 775 670 417 RCS PARISAgainst the backdrop of the Covid-19 pandemic, the Shareholders’ Meeting will be held on Tuesday, June 30, 2020 at 10:30 a.m., with no shareholders physically present, at the Company’s registered office: 22 avenue Montaigne, 75008 Paris, France.The prior notice of meeting that serves as a convening notice, which includes the agenda and the resolutions as well as the conditions for participating and voting in the Meeting, was posted on the Bulletin des Annonces Légales Obligatoires (BALO) website (www.journal-officiel.gouv.fr/balo) on Monday, May 25, 2020, Issue No. 63.The convening notice was posted on the Bulletin des Annonces Légales Obligatoires (BALO) website (www.journal-officiel.gouv.fr/balo) on Monday June 8, 2020, Issue No. 69.The documents and information concerning the Shareholders’ Meeting will be made available to shareholders as provided by applicable regulations.In accordance with Article R.225-73-1 of the French Commercial Code, shareholders will be able to consult, as of today, on the LVMH website www.lvmh.com (under Investors/Individual Shareholders/Annual General Meetings), the informational documents in preparation for this Meeting.Shareholders are invited to regularly consult the Company’s website to remain up-to-date with the latest announcements. Attachment * Procedures for making available and consulting preparatory documents
Shares of luxury jeweler Tiffany & Co. (NYSE: TIF) have jumped today, up 6.7% as of 3:30 p.m. EDT, after luxury conglomerate LVMH Moet Hennessy (OTC: LVMHF) backed off its threat to renegotiate the terms of its deal to acquire Tiffany. Last year, LVMH agreed to purchase Tiffany for $16.2 billion, or $135 per share, in a deal that was -- at the time -- expected to close this month.
Following news that multinational luxury and fashion goods titan LVMH Moet Hennessy (OTC: LVMHF) wanted to lower the price on its acquisition of Tiffany & Co. (NYSE: TIF), sources say that the jewelry company threatened to launch a lawsuit in response. Today, LVMH says it won't try to renegotiate its deal with Tiffany, prompting a more than 7% rise in Tiffany's share value as investors bid the stock up on the favorable news. Last year, LVMH agreed to purchase Tiffany for $16.2 billion, or $135 per share, with a closing date originally set for June 2020, but postponed until October due to regulatory hurdles.
French luxury goods giant is not asking to renegotiate its $16.2-billion acquisition of U.S. jewelry chain Tiffany & Co after deliberating whether to do so, people familiar with the matter said on Friday. LVMH CEO Bernard Arnault has been in talks with his advisers this week to identify ways to pressure Tiffany to lower the agreed price of $135 per share in cash, Reuters reported on Wednesday. LVMH also said on Thursday that its board had discussed the impact of the COVID-19 pandemic on its deal with Tiffany.
(Bloomberg) -- Tiffany & Co. shares had their biggest gain in more than two months after Reuters reported that LVMH decided against trying to negotiate a lower price for its planned $16 billion acquisition of the U.S. jeweler.The stock rose 8% to $123.80 Friday. LVMH Chairman Bernard Arnault had been in talks with advisers to identify ways to pressure Tiffany to accept a lower price, though he abandoned the plan after they found too many legal hurdles, Reuters said, citing people it didn’t name close to the situation.The French luxury giant has said its board met Tuesday to discuss its planned purchase amid reports that the deal might need to be reworked. LVMH ruled out buying Tiffany shares on the open market even though they’ve been trading at a discount to the agreed price of $135 a share.While analysts have said the jeweler complements LVMH’s business, the deal may create headaches. Tiffany’s reliance on the U.S. market makes it more vulnerable in the face of the coronavirus-related economic fallout and rising social unrest.It’s not clear whether LVMH will revisit the issue at a later date if Tiffany’s financial situation worsens, Reuters said.(Updates share price in second paragraph, detail from Reuters report in final)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
LVMH said on Thursday Frederic Arnault, one of the younger sons of the luxury goods group's billionaire boss, would take over running watch brand Tag Heuer, joining his siblings in taking on bigger roles within the conglomerate. The Arnault family controls just under half of LVMH, which has vastly expanded through acquisitions under CEO Bernard Arnault, France's richest man, and owns fashion labels such as Louis Vuitton and also champagne and jewellery brands. Frederic Arnault, 25, will step up at Tag Heuer as of July 1, the company said.
(Bloomberg) -- LVMH’s board has discussed its planned $16 billion purchase of Tiffany & Co. amid reports that the deal might need to be reworked as the Covid-19 pandemic and protests in U.S. cities cloud the jeweler’s prospects.The Louis Vuitton owner said directors met Tuesday to examine the agreement. LVMH ruled out buying Tiffany shares on the open market even though they trade at a 15% discount to the agreed price of $135 a share.The French company said its board “focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co. with respect to the agreement that links the two groups.”While analysts have said the jeweler complements LVMH’s business, the deal may create headaches. Tiffany’s reliance on the U.S. market makes it more vulnerable in the face of the Covid-related economic fallout and rising social unrest.Since the deal -- the largest in the luxury-goods industry -- was reached in November, the virus outbreak has decimated demand. The political fallout from the death of George Floyd additionally risks weighing on consumer appetite, and Tiffany shares traded near a two-month low Thursday.LVMH shares were little changed in Paris. Tiffany is prepared to litigate if LVMH proposes a price cut, CNBC’s David Faber said, citing people familiar with the situation.Investors have applauded the acquisition of Tiffany as a way for the luxury giant to better compete with Richemont-owned Cartier for leadership in the global jewelry market. However, Tiffany shares started dropping in March, when people familiar with the matter told Bloomberg that LVMH was considering buying shares on the open market and examining possible legal hurdles to the idea.What Bloomberg Intelligence Says:LVMH has reiterated its mid-April message of not dipping into the market to buy Tiffany shares, and we believe the deal will complete this year.\-- Deborah Aitken, senior analystLVMH Sticks to Tiffany Agreement, No Dipping in Downturn: ReactLVMH responded at the time that it was currently bound by an agreement not to buy Tiffany stock on the open market. On Thursday it reiterated that it is not considering such a step.Women’s Wear Daily reported earlier this week that the planned deal is on shaky ground. Tiffany would be worth $60 to $75 a share if LVMH walks away, Credit Suisse analyst Michael Binetti wrote Wednesday.(Updates with shares in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Maybe LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) is trying to get a better price for Tiffany (NYSE: TIF) after all. It maintained, "LVMH is currently committed not to buy Tiffany shares." Acquiring the stock that way would have significantly lowered the cost of the deal as Tiffany's stock plunged about 20% or so to around $105 a share when the COVID-19 outbreak was declared a pandemic.
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LVMH <LVMH.PA>'s board met this week to discuss the fallout from the coronavirus crisis on its $16.2 billion purchase of U.S. jeweller Tiffany <TIF.N>, the luxury goods group said on Thursday, opening the door to a possible attempt to review the deal terms. LVMH, run by France's richest man, Bernard Arnault, agreed to buy Tiffany in November, before the retail business was hammered by the pandemic. Arnault is now exploring ways to reopen negotiations and potentially pressure Tiffany to lower the agreed deal price of $135 per share, people familiar with the matter told Reuters, including by examining its compliance with financial covenants.
Paris, June 4, 2020The Board of Directors of LVMH Moët Hennessy Louis Vuitton, met on Tuesday, June 2nd, 2020 and notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co with respect to the agreement that links the two groups. Considering the recent market rumors, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market. LVMH LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun. Its Fashion and Leather Goods division includes Louis Vuitton, Christian Dior Couture, Celine, Loewe, Kenzo, Givenchy, Pink Shirtmaker, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana, RIMOWA, Patou and Fenty. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot. LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin d’Acclimatation, Royal Van Lent, Belmond and Cheval Blanc hotels.LVMH CONTACTS Analysts and investors Chris Hollis LVMH + 33 1 44 13 21 22 Media Jean-Charles Tréhan LVMH + 33 1 44 13 26 20 MEDIA CONTACTS France Brune Diricq / Charlotte Mariné Publicis Consultants + 33 1 44 82 47 20 France Michel Calzaroni / Olivier Labesse / Hugues Schmitt / Thomas Roborel de Climens DGM Conseil + 33 1 40 70 11 89 Italy Michele Calcaterra, Matteo Steinbach SEC and Partners + 39 02 6249991 UK Hugh Morrison, Charlotte McMullen Montfort Communications + 44 7921 881 800 US James Fingeroth, Molly Morse, Anntal Silver Kekst & Company + 1 212 521 4800 China Daniel Jeffreys Deluxewords +44 772 212 6562 +86 21 80 36 04 48 Attachment * LVMH Press Release 4 June 2020
LVMH agreed to acquire Tiffany in November, but the deal has yet to close, pending regulatory approvals. Arnault said at the time Tiffany would "thrive for centuries to come" under LVMH. Arnault has been in talks with his advisers this week to identify ways to pressure Tiffany to lower the agreed price of $135 per share in cash, the sources said.
(Bloomberg Opinion) -- Even the most upmarket buyers like to get their money’s worth. No wonder LVMH Moet Hennessy Louis Vuitton SE is having second thoughts about its $16 billion takeover of Tiffany & Co., according to Women’s Wear Daily.Walking away from the deal, which is due to close shortly, wouldn’t be ideal after all the fanfare made about the merits of buying the iconic U.S. jewelry brand. But it would be remiss of LVMH Chairman Bernard Arnault not to try to get better terms — particularly since he has the advantage.The world has changed since the takeover was agreed in November. The Covid-19 pandemic has dented luxury goods demand with shops shuttered and sweatpants-wearing consumers locked down with nowhere to go. Industrywide sales could fall as much as 35% this year, according to Bain & Co. The civil unrest in the U.S. is another risk, particularly for an American brand.So, depending on the fine print in the purchase agreement, Arnault could try to wriggle out altogether. There are doubts that it will go ahead as planned. Tiffany shares closed at $117 on Tuesday, significantly lower than LVMH’s $135 offer price. But dropping the deal now, particularly if it led to a lengthy legal battle, could risk some reputational damage. It could also signal that LVMH, the world’s dominant luxury conglomerate, built on a history of strategic, successful acquisitions, isn’t so resilient after all. True, even after the pandemic, LVMH’s market capitalization is close to 200 billion euros ($224 billion). So Tiffany is a relatively modest transaction. But the French fashion giant won’t have escaped the maelstrom, not only in luxury goods, but in cosmetics, with its Sephora chain, and in duty-free travel retail, with DFS.Tiffany is still a prized asset, with huge potential if it can be elevated from simply affordable luxury to mega-bling. So Arnault is most likely to try to burnish his standing as a dealmaker by extracting better terms for his shareholders. Especially since Tiffany already needed some polish to achieve its potential, and the task will be even more difficult now. It will require significant investment both in the company’s product range and marketing.Against this backdrop, trying to save on the purchase price looks sensible. A precedent has already been set by Sycamore Partners, which tried to extract itself from its $525 million deal to buy lingerie brand Victoria’s Secret. In the end, L Brands Inc. ended up terminating the agreement. But it’s hard to see Tiffany doing this — it’s unlikely to want to pursue its turnaround plan in a such a difficult environment without a muscular parent. Given the luxury slump, it’s not obvious that Richemont or Gucci-owner Kering SA would step in.Of course, Arnault could take his chances, withdrawing now — if he can — with the aim of trying to buy Tiffany again later at a lower price. But that’s a risky strategy. Another friendly deal wouldn’t likely be forthcoming, and often once a trophy asset is lost, it doesn’t become available again.Arnault would be better off holding onto this bauble, and, like many luxury shoppers right now, trying to negotiate a hefty discount.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tiffany's shares closed down nearly 9% after the news. LVMH's board called a meeting in Paris on Tuesday night to discuss the matter, WWD reported, citing sources. LVMH's board is concerned about the COVID-19 pandemic and protests linked to the death of George Floyd at the hands of Minneapolis police, according to the report.
(Bloomberg Opinion) -- Another day, another billionaire takes a seat at the table at storied French publisher and retailer Lagardere SCA. Luxury tycoon Bernard Arnault yesterday joined Vincent Bollore and Marc Ladreit de Lacharriere as a player in a busy field of French establishment figures gaining influence at the company. For ordinary shareholders, it’s a very mixed blessing.Lagardere is worth just 1.9 billion euros ($2.1 billion). Even a dramatic turn in its fortunes would make scant difference to a billionaire’s net wealth. But one titan after another has rushed to the aid of scion and general partner Arnaud Lagardere after London-based hedge fund Amber Capital U.K. LLP pressed for an overhaul of the company’s governance.Bollore’s Vivendi SA and Ladreit de Lacharriere took big stakes last month, helping to defeat Amber’s resolutions for new board members at the annual meeting. (Vivendi has further upped its stake in the company to 16%.) That took the pressure off Lagardere personally. A new board might have pushed him to make changes to the so-called commandite partnership structure through which he controls the group with just a 7% shareholding.But there was still a question of whether Lagardere might try to bolster his own finances by selling the commandite of his own accord. Surrendering control would, after all, be compensated. That would improve the financial position of the holding company through which he holds his Lagardere stake.The intervention by Arnault further complicates the dynamics. Unlike the others, the head of LVMH Moet Hennessey Louis Vuitton SE is investing not in Lagardere the company directly but in Arnaud Lagardere’s personal vehicle, taking approximately 25%, reportedly for less than 100 million euros. While Arnault owns a radio station and two national newspapers, the move looks more personal than tactical. He and Lagardere’s father Jean-Luc were friends. Both families have sat on each other’s boards. He appears to be doing Lagardere a big favor.The precise transaction terms aren’t clear. It’s likely that Lagardere himself receives some cash directly, with the rest going into the vehicle to cut leverage. Either way, it’s a huge boost for him. If the failure of Amber’s resolutions meant the board was unlikely to push to make Lagardere a normal French corporation, it’s now less likely that he will rush to seek the transformation himself.As things stand, Lagardere may still technically be in control, but he has gained a co-pilot in Arnault, and the luxury billionaire now appears closer to the steering wheel than Bollore. It’s a messy situation and the logic for ending the commandite remains. With the pressure off, Lagardere is in a more advantageous position to negotiate terms to his liking. Minority shareholders can but hope everyone involved sees a mutual interest in getting round the table and talking.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.