World News

LVMH considering buying Tiffany’s shares on open market: Bloomberg News

(Reuters) – French luxury goods maker LVMH <LVMH.PA>, which last year agreed to buy Tiffany & Co <TIF.N> for $16.2 billion, is considering buying shares of the U.S. jeweler for less on the open market, Bloomberg News reported on Thursday, citing people familiar with the matter.

Global stock markets have slumped since the coronavirus outbreak has halted most business activities, led to the fallout of many industries and spooked investors about a possible recession.

According to the Bloomberg report, LVMH has discussed the plan with Tiffany’s board, which could give the potential transaction a green signal after reporting quarterly results.

Tiffany is due to report its results on Friday.

LVMH is yet to make a decision on the transaction and is discussing potential legal hurdles to the idea, the report said.

Last month, LVMH was set to raise 9.3 billion euros from bond markets to help to finance the deal, which is expected to be completed in the middle of 2020. The latest move affirms the French company’s interest in Tiffany.

Both LVMH and Tiffany were not immediately available for comment.

Tiffany has temporarily closed several stores, including its Fifth Avenue flagship store in New York, and reduced working hours at other outlets to stop the spread of the coronavirus.

The company’s share closed up 14.3% at $126.51%.

(Reporting by Nivedita Balu in Bengaluru; Editing by Maju Samuel)