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.

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