Tiffany & Co. (NYSE: TIF) is running for the top in the market this morning, trading on gains of more than 30%. The gains come after the company confirmed that it has received an offer to be taken over at a strong premium. Here’s what’s going on:
TIF Stock Flies On Unsolicited Takeover Offer
In a press release issued early this morning, Tiffany & Co. confirmed that it has received an unsolicited takeover offer. The offer is a non-binding proposal that was sent by LMVH Moet Hennessy – Louis Vuitton.
According to the release, LMVH offered to purchase all outstanding and issued shares of TIF at a price of $120 per share. Should the deal take place, it will be an all-cash transaction.
In the release, TIF said that it is not currently in discussions with LMVH. However, the company intends on fulfilling its fiduciary responsibilities. Of course, this means that the company will carefully review the proposal.
The company also said that it intends on working with the assistance of independent financial and legal advisors. The goal of this collaboration is to determin a course of action that is in the best interest of both the company and its shareholders.
The company said that shareholders don’t need to take any action at this time. It also said that it is successfully executing on its business plan and remains focused on achieving its goal of becoming the Next Generation Luxury Jeweler.
Tiffany has hired Goldman Sachs and Centerview Partners to act as its financial advisers. Sullivan & Cromwell will serve as the company’s legal advisor in the review.
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