LVMH and Tiffany (Speculation Goes Wild!) - Cutting Remarks

JCK Online

Cutting Remarks

Blog

Cutting Remarks

« The DDC Keeps Term Limits... | Main | When Jewelers Bash Each Other... »

Link This | Email this | Blog This | Comments (1)

Rob Bates

LVMH and Tiffany (Speculation Goes Wild!)
February 28, 2008

This Wall Street Journal post includes the latest rumors that LVMH wants to buy Tiffany ...

Now, these rumors, which the companies deny comment on, apparently have done a bit for Tiffany's stock price ... And while they are just rumors – rumors which have been proven false in the past, even if they keep coming up – if you don't mind speculating, follow me here ...

- De Beers and LVMH are partners in the De Beers retail chain.

- De Beers is also a major supplier to Tiffany, which has no less than five sights.

So if this deal does go through -- and let me stress there is no offer, never mind a deal -- De Beers would be partners with the owner of a major customer. Interesting!

UPDATE: Great point from Homer in the comments.

Posted by Rob Bates on February 28, 2008 | Comments (1)

February 28, 2008
In response to: LVMH and Tiffany (Speculation Goes Wild!)
Homer commented:

Another, more sinister way of looking at it is that De Beers' partner would be taking over perhaps the biggest competitor to its still-nascent retail project. If I were De Beers, I would be more concerned that LVMH is losing interest in the De Beers retail stores than any perceived conflict of interest.