LV buying Tiffany...

[Fat_ninja]

Originally Posted by TJMike

Ninja why did you have to bring actual facts into the discussion? :)

Sometimes I’m serious...most of the time I’m not lol.

[Fat_ninja]

Originally Posted by PPFANBOY

Great.
Now we can have LV edition Pateks. Yikes.

Tiffany brand image- jewelry for women.
LV brand image- bags for women.

I'll pass on both being on any watch let alone a Patek.

C’mon bro. If LV is good enough for patekaholic. It’s good enough for me


Reminds me I need to buy a hat....

[Josh1000]

Patek definately doesnt need Tiffany. There is a historical link that is easily broken off when ownership changes. The watches T sell will easily be made up by existing AD's.

[Ichiran]

Originally Posted by Fat_ninja

C’mon bro. If LV is good enough for patekaholic. It’s good enough for me

If LV is good enough for ninja, it's more than good enough for me.

[Fat_ninja]

Originally Posted by Ichiran

If LV is good enough for ninja, it's more than good enough for me.

I was just kidding I don’t do LV. Sorry bro.

[TJMike]

Everyone knows Ninja is a Hermes man!

[Fat_ninja]

Originally Posted by TJMike

Everyone knows Ninja is a Hermes man!

Mostly,...but For my weekender bag. I actually have a leather Coach bag. I use to walk around with the free banker bags but then I grew out of it... look like a little kid just out of college.

[TJMike]

Originally Posted by Fat_ninja

Mostly,...but For my weekender bag. I actually have a leather Coach bag. I use to walk around with the free banker bags but then I grew out of it... look like a little kid just out of college.

Just had to look up what banker bags are. I just use a very beat-up Northface backpack.

[77T]

LVMH appears to be the first party to act in that article. Tiffany may have put feelers out there without seeking strategic options. The board has likely expressed their impatience with continued declining revenues and share.

In historical context, Tiffany is in a weak spot currently - losing share and brand presence. They are struggling for growth.


https://www.forbes.com/sites/pamdanz...g-term-growth/


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[Fat_ninja]

Originally Posted by 77T

LVMH appears to be the first party to act in that article. Tiffany may have put feelers out there without seeking strategic options. The board has likely expressed their impatience with continued declining revenues and share.

In historical context, Tiffany is in a weak spot currently - losing share and brand presence. They are struggling for growth.


https://www.forbes.com/sites/pamdanz...g-term-growth/


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Sounds like LV is interested to strengthen the Us position.

Btw. LV is $215 bil mkt cap while TIf is a little above $12bil. There’s also synergies that would adjust the valuation down. Even if they paid up given low capital cost it be minimal leverage to LV. It cost nothing.

It’s like going to buy an aqua at the grey...u don’t want to but it ain’t going to kill you.


This is kind of exciting. Major shake up in the industry of it happens.

[PPFANBOY]

Originally Posted by Fat_ninja

C’mon bro. If LV is good enough for patekaholic. It’s good enough for me


Reminds me I need to buy a hat....

Hahaha. Yeah post pics of said hat... And man bag.

Originally Posted by Fat_ninja

Sounds like LV is interested to strengthen the Us position.

Btw. LV is $215 bil mkt cap while TIf is a little above $12bil. There’s also synergies that would adjust the valuation down. Even if they paid up given low capital cost it be minimal leverage to LV. It cost nothing.

It’s like going to buy an aqua at the grey...u don’t want to but it ain’t going to kill you.


This is kind of exciting. Major shake up in the industry of it happens.

Loll. Throwing shade at the Aqua. Truth.

[Fat_ninja]

Originally Posted by TJMike

Everyone knows Ninja is a Hermes man!

My wife showed me on line a Hermes fanny pak. Must be the stupidest thing I’ve ever seen. OMG

Probably will look great on her lol

[77T]

If the deal is done cooperatively, a price (LVMH stock + cash, or stock only) would be valued somewhere near 120% of Friday’s close. But below the 52 week TIF high.

An unfriendly offer would likely make TIF more expensive - potentially above that 52 week high. As for the PP connection, that’s something LVMH might work out during the pre-close integration work. I don’t see a “partner-adverse” conflict there.

LVMH could use TIF in US for distribution but there is also a hidden persuader for LVMH. TIF has gone down market in some products to snag millennial sales. That element brings revenue which LVMH would not want at the cost of their brand presence in luxe goods.


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[77T]

Originally Posted by Fat_ninja

My wife showed me on line a Hermes fanny pak. Must be the stupidest thing I’ve ever seen. OMG



Probably will look great on her lol

Nicest CCW bag I’ve seen...


Sent from my iPhone using Tapatalk Pro

[Fat_ninja]

Originally Posted by PPFANBOY

Loll. Throwing shade at the Aqua. Truth.

No I was throwing shade at Tiffany lol.

[Fat_ninja]

Originally Posted by 77T

If the deal is done cooperatively, a price (LVMH stock + cash, or stock only) would be valued somewhere near 120% of Friday’s close. But below the 52 week TIF high.

An unfriendly offer would likely make TIF more expensive - potentially above that 52 week high. As for the PP connection, that’s something LVMH might work out during the pre-close integration work. I don’t see a “partner-adverse” conflict there.

LVMH could use TIF in US for distribution but there is also a hidden persuader for LVMH. TIF has gone down market in some products to snag millennial sales. That element brings revenue which LVMH would not want at the cost of their brand presence in luxe goods. ..



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I don’t think the deal is hostile... the article says they in discussions...

Btw people forget that there is a lot of real estate value in Tiffany. How much u think that flagship is worth lol. U know the one right next to trump towers .

Isn’t French bonds negative rates? Or half of Europe along with Japan...

[chsu74]

Originally Posted by ct.matt

As a former LV employee (corporate, was not slinging purses) I will not be buying anything LV anymore in this lifetime, especially following their move with Made in the USA leather goods sewn together by untrained workers in Texas who get $13/hr. Their hiring criteria specified no prior experience necessary. How to dilute your brand equity and alienate customers

Agree. I have never found LV’s choice of material quality and workmanship to be worth its asking price.

Ferragamo and BV, on the other hand, are expensive but their quality of leather and workmanship is better than the rest with Ferragamo edging out in material quality sourcing.

[77T]

Originally Posted by Fat_ninja

I don’t think the deal is hostile... the article says they in discussions...

I may have been too ambiguous. In my first sentence I was discussing a cooperative sale.

In the second one I was opining on how it gets more expensive if LVMH went frontal.


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[Fat_ninja]

Originally Posted by 77T

I may have been too ambiguous. In my first sentence I was discussing a cooperative sale.

In the second one I was opining on how it gets more expensive if LVMH went frontal.


Sent from my iPhone using Tapatalk Pro

My mistake... I read wrong


English isn’t my first language. But I forgot my first language

[locutus49]

Yeah, it's not fair to bring facts to a knife fight.

Originally Posted by TJMike

Ninja why did you have to bring actual facts into the discussion? :)

[mongrelnomoad]

LVMH, the destroyer of great artistry in the name of the global blandisation of LUXURY(TM).

They are locusts.

[MadSpaniard]

Apparently things are heating up quickly, WSJ now reporting that LVMH offering about $120 per share, similar stories also being reported elsewhere e.g. The Street, Reuters, etc.

https://www.wsj.com/articles/lvmh-ma...d=hp_lead_pos3

[Fat_ninja]

https://www.ft.com/content/aac87166-...4-36acbbb0d9b6

Expected to reject initial bid... and the price goes up

[BigAppleBill]

Originally Posted by Fat_ninja

https://www.ft.com/content/aac87166-...4-36acbbb0d9b6

Expected to reject initial bid... and the price goes up

Looks like LVMH is getting the full Patek Boutique experience.

[CamSLC]

Originally Posted by BigAppleBill

Looks LVMH is getting the full Patek Boutique experience.

[Raemondo]

I think the deal makes sense and am betting that it will close. They are likely just negotiating price at the moment. Unlikely there would be this much publicity without an actual close as there aren’t many potential acquirers for Tiffany.

Richemont is the only other potential acquirer but they just bought Bucellati recently and a Tiffany acquisition would mean they would have to manage competition between red box (Cartier) and blue box.

Other brands left to purchase include Chopard ($800M revenue) and David Yurman ($550M revenue) but they are too small to put LVMH ahead.

I doubt the $140/share price will happen, as that was the peak for like a day. The initial offer was for 22% premium, 15x EBITDA. For comps, LVMH bought Bulgari in 2011 for $5B at 23x EBITDA, and Swatch bought Harry Winston for $1B, 17x EBITDA. I think LVMH might pay 20x EBITDA — they bought Dior in 2017 at a 15% premium, 16x EBITDA.

I don’t think the Patek-Tiffany relationship goes away. My guess is LVMH will keep it as it probably wants to acquire Patek someday. That said, buying T-stamps never go out of style!

[DasKptl]

Originally Posted by Raemondo

I don’t think the Patek-Tiffany relationship goes away. My guess is LVMH will keep it as it probably wants to acquire Patek someday.

That's my thinking, too. If any conglomerate will ever attempt to acquire Patek, it'll be LVMH, not Richemont or Swatch.

[WatchLurv]

Tiffany stamped Hublots, et. al.

[Fat_ninja]

Originally Posted by WatchLurv

Tiffany stamped Hublots, et. al.

Who blowwwsssss

[WatchLurv]

Originally Posted by Fat_ninja

Who blowwwsssss

Soon buying limited edition Hublots with Tiffany stamps