// LVMH increases offer for Tiffany & Co
// LVMH CEO Bernard Arnault sent a letter to Tiffany last month proposing an all-cash takeover bid of £91.31 a share
// A takeover of Tiffany would be the largest-ever acquisition by Arnault
LVMH has raised its offer for Tiffany & Co in a bid to spur the luxury jewellery retailer into considering the deal.
The new takeover offer is now at $130 (£98.95) a share, valuing Tiffany at around $15.8 billion (£12.03 billion) including $350 million (£266.39 million) in net debt, according to Reuters.
The raised offer marks a premium of about 30 per cent to Tiffany’s stock price before it emerged in late October that LVMH had expressed interest in the jeweller.
READ MORE: Louis Vuitton owner LMVH eyes Tiffany takeover
LVMH chief executive Bernard Arnault sent a letter to the jeweller last month proposing an all-cash takeover bid of $120 (£91.31) a share.
A takeover of Tiffany would be the largest-ever acquisition by Arnault.
However, no final decision has been made and the talks could fall through. It is also unclear whether Tiffany is holding discussions with any other companies.
Nevertheless, LVMH remains assured that Tiffany is currently mulling a deal as it has been given access to financials.
Meanwhile, Tiffany shares rose more than three per cent in after-hours trading on Wednesday to $128 (£97.41) after the announcement that it was opening its books to LVMH.
If the takeover is approved, LVMH said it will further expand its presence in the US.
The deal is expected to strengthen LVMH’s jewellery division, putting it in better position to compete against Richemont.
LVMH has 75 brands, 156,000 employees and a network of more than 4590 stores, while Tiffany employs more than 14,000 people and operates about 300 stores globally.
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