Saturday, February 23, 2013

LVMH wants Burberry? Not Going To Happen

It's a RUMOR folks...or is it? 

Stock markets and industry observers shrugged off reports that LVMH Moët Hennessy Louis Vuitton might acquire Burberry or Tiffany in order to bolster its slowing revenue growth.

While LVMH, Burberry and Tiffany all declined comment on the speculation, sources close to LVMH said the French luxury giant is unlikely to buy either of the two companies.

On Friday, shares in Burberry gained as much as 3 percent following a Bloomberg report suggesting LVMH is poised to make an acquisition, with analysts touting Burberry and Tiffany as likely and interesting targets.

LVMH stock closed up 1.5 percent Friday. Shares in Burberry Group closed up 1 percent on the London Stock Exchange. Tiffany investors essentially shrugged off the possibility as part of the routine rumor mill — the company’s been the subject of merger talks on and off in the past few years. Shares of Tiffany & Co. inched up nearly 0.2 percent to close at $64.38 in trading Friday on the New York Stock Exchange.

No comments:

Post a Comment