LVMH scoops up Tiffany for $16.2 billion - CNN

The two companies announced Monday that LVMH will buy the Manhattan jeweler, famous for its little blue boxes and Fifth Avenue flagship store. The French luxury group will pay $135 per share, valuing Tiffany at about $16.2 billion.

A deal had been expected for weeks. Tiffany and LVMH both confirmed in October that they were in talks to combine after Paris-based LVMH reached out with an unsolicited initial offer of $14.5 billion. That was already a premium over Tiffany's stock price at the time.

The deal is one of the largest in the history of the luxury sector and in the career of LVMH CEO Bernard Arnault, Europe's richest man.

LVMH is the world's biggest luxury group and home to 75 different brands, including Christian Dior and Bulgari. Analysts have been bullish on its latest deal, saying that Tiffany is a good acquisition target because of its strong global brand.

"A takeover of Tiffany could make a lot of sense," analysts at Bernstein wrote in a research note last month. While Tiffany is one of the world's best-known luxury brands, analysts say it still has room to grow, particularly in jewelry and watches. And LVMH's deep pockets could help Tiffany turn around after a rocky few years, and fuel its effort to better connect with millennial consumers.

In a statement Monday, Tiffany chairman Roger N. Farah said the deal would give the company "an exciting path forward with a group that appreciates and will invest in Tiffany's unique assets and strong human capital."

The deal would also bolster LVMH's jewelry and watch lineup, which already includes legacy brands such as Hublot and TAG Heuer. It would also boost the French company's presence in the United States, which accounts for about a quarter of its revenue.

LVMH has for years been the top seller of high-end goods, according to a Deloitte analysis published this year. But sales in its jewelery and watch division make up only 9% of the company's total revenue.

Tiffany, a 182-year-old jeweler, employs 14,000 people and operates 300 stores around the globe. In recent years, however, its sales have slumped.

LVMH, meanwhile, has enjoyed much more success among millennials, attracting attention from prominent influencers including Kylie Jenner and Cardi B. It owns major fashion houses such as Fendi and Louis Vuitton, as well as beverage brands Moet and Hennessy. Earlier this year, the conglomerate acquired Rihanna's Fenty and Fenty Beauty fashion and cosmetics lines, which have enjoyed unique success marketing to a diverse swath of young women.

Tiffany and LVMH said Monday that the deal is expected to close in the middle of 2020.

CNN Business' Clare Duffy contributed to this report.

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2019-11-25 08:09:00Z
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LVMH confirms deal to acquire Tiffany for $16.2 billion - CNBC

A woman walks past a Tiffany & Co. store at a shopping mall in Beijing, November, 2018.

Mark Schiefelbein | AP

LVMH has reached a deal to buy Tiffany & Co. at $135 a share in cash, or $16.2 billion, in a move that will give the company more access to U.S. luxury consumers.

Confirming the deal, which CNBC first reported on Sunday, LVMH said in a statement that "the acquisition of Tiffany will strengthen LVMH's position in jewelry and further increase its presence in the United States."

It said it would also "transform LVMH's Watches & Jewelry division and complement LVMH's 75 distinguished Houses."

LVMH CEO Bernaud Arnault said that the company intended "to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands."

LVMH shares were trading 1.4% higher Monday morning following the announcement. 

LVMH has built up a large portfolio of luxury brands across different retail sectors, from fashion to perfume. Some of its well-known brands include Moët & Chandon, Dom Perignon, Givenchy and Louis Vuitton.

The boards of both LVMH and Tiffany approved the deal on Sunday and the transaction is expected to close in the middle of 2020, subject to approval from Tiffany's shareholders and regulatory approvals.

Tiffany was founded in New York in 1837 and became an iconic jewelry brand in the 20th century, but it has struggled with growth over the last several years. It experienced falling annual sales and profit since 2015, before a revenue turnaround in 2017. The jeweler has also pushed an expansion into China, but experienced a decline in sales in the U.S. and Asia from factors like the U.S.-China trade war.

LVMH has sweetened its bid for Tiffany from an original offer of $120 per share, made in October. That had been rebuffed by the company that said it significantly undervalued the jewelry maker. Shares of Tiffany, the iconic New York-based jeweler, have risen over hopes of a higher priced deal. Shares closed on Friday at $125.51. They had traded at about $140 in the middle of last year.

"It looks like a good match really," Raphael Pitoun, portfolio manager at CQS New City Equity, told CNBC Europe's "Squawk Box" on Monday.

"The branding of Tiffany has weakened a bit over the last few years and LVMH has great expertise in helping brands to develop internationally, they did that with Bulgari already — it was not an easy acquisition at the time and they managed to really grow the brand quite strongly over the last few years — so it really looks like a good fit, it makes sense," he said.

—CNBC's Emma Newburger contributed reporting to this story.

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2019-11-25 07:09:00Z
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LVMH nears deal to buy Tiffany for $16.7bn - Financial Times

France’s LVMH is nearing a $16.7bn deal to buy Tiffany & Co, after the US jeweller managed to squeeze another higher offer from Bernard Arnault’s luxury group, according to people close to the deal.

The boards of both companies are set to meet on Sunday to approve the latest $135 per share bid from LVMH for the US maker of diamond engagement rings. The all-cash bid values Tiffany shares at $16.3bn and the company has about $350m of net debt.

The takeover may be announced as soon as Monday, these people said, though they cautioned that there were still a few more hurdles to overcome before a transaction was signed.

The deal, one of the biggest in the career of Mr Arnault, Europe’s richest man, would deliver the French owner of Louis Vuitton, Dior and Sephora a new brand that has a considerable footprint in the US and which is popular with Asian customers.

The two sides have been in talks for weeks since it was revealed that LVMH tabled its first offer at $120. Last week, the French group increased its offer to $130 per share and was granted access to Tiffany’s books to conduct due diligence.

Tiffany and LVMH did not immediately respond to a request for comment.

More to follow . . .

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2019-11-24 14:30:00Z
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Tesla has already received 146,000 pre-orders for its divisive Cybertruck - The Verge

Two days after its big (and slightly botched) unveiling, the Cybertruck is already racking up a lot of interest. Tesla has received 146,000 preorders for the polarizing electric pickup truck, Elon Musk tweeted on Saturday. And with customers dropping $100 refundable deposits for each preorder, that’s a cool $14.6 million for Tesla’s bank account.

Tesla is offering three versions of the truck: single motor rear-wheel drive with 250 miles of range for $39,900; dual motor all-wheel drive with 300 miles of range for $49,900; and tri motor all-wheel drive with 500 miles of range for $69,900. Musk said that 42 percent of preorders are dual motor, 41 percent tri motor, and 17 percent single motor.

146k Cybertruck orders so far, with 42% choosing dual, 41% tri & 17% single motor

— Elon Musk (@elonmusk) November 23, 2019

“With no advertising & no paid endorsement,” Musk said in a follow up tweet.

Customers preordering the Cybertruck will have to wait a while before the boxy pickup pulls into their driveways, though. Production on the single and dual motor versions isn’t slated to begin until late 2021, while the tri motor truck won’t roll off the assembly line until late 2022.

Tesla uses preorders for its forthcoming vehicles to generate excitement and provide a short-term revenue infusion, which helps provide a cushion for the cash-strapped automaker. And Musk likes to tout preorder numbers to juice more sales. For example, the company received 276,000 preorders for the Model 3 a few days after its unveiling in 2016; a few days later that number grew to 325,000.

To be sure, Tesla doesn’t always release its preorder numbers. The company has yet to reveal how many customers have put down deposits for the Model Y, its electric crossover.

The Cybertruck is no Model 3 or Model Y, but the respectable number of preorders indicates that Tesla is still has its fingers on the pulse of what customers want to buy. That said, the Blade Runner-inspired design of the truck has been wildly polarizing to say the least.

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2019-11-24 12:55:51Z
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7 funky features on Tesla's Cybertruck - Fox News

The electric Tesla Cybertruck may have outlandish styling but, at heart, it's still just a four-wheel, four-door pickup that you can read more about by clicking here.

That said, it does offer plenty of features you won’t find on many other mass-market trucks, and not just its battery pack. Here are a few of the standouts:

IT LIGHTS UP

Along with its full-width LED headlight bar, there’s an auxiliary strip for off-road driving hidden at the top of its windshield, just below the unique peak in its roof.

IT’S MADE FROM SPACE AGE MATERIAL

The Cybertruck’s body is constructed of thick sheets of the same 30-times-cold-rolled stainless steel used on the SpaceX Starship. Along with being scratch- and dent-resistant, Tesla claims it can withstand a 9-mm. firearm round. (Then again, it said the “Armor” windows were super strong, too.)

IT’S A YOKE

Instead of a hoop, the Cybertruck has a steering wheel modeled after the type on an aircraft yoke with grips at 9 and 3 o’clock.

IT’S GOT WINGS

Along with a covered bed with a trunk in the floor and a “frunk” under the hood, each of the rear roof buttresses hides storage compartments beneath butterfly doors.

YOU CAN STEP ON IT

The powered bed cover is strong enough to walk on and fully retracts into the space between the bed and the cabin when it’s opened.

IT GETS DOWN

The Cybertruck will come with an optional Cyberquad electric ATV that you can drive into the bed using a ramp that extends from the tailgate as the pickup’s standard air suspension system squats.

IT HAS A SIX-PACK

Like some traditional trucks, the Cybertruck has three-across front seating thanks to a center jump seat that turns into an armrest when not in use.

IT COOKS

Tesla will offer a camping package that includes a polygonal tent to match its styling, a raised sleeping floor for the bed, and a slide-out electric stove that runs off the battery pack.

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2019-11-24 12:08:10Z
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Cybertruck: Tesla truck gets 150,000 orders despite launch gaffe - BBC News

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Tesla has received almost 150,000 orders for its new pickup truck, boss Elon Musk has said, despite an embarrassing hiccup at its launch.

Mr Musk was caught out on stage when the windows of the Cybertruck shattered during a demonstration supposed to show their durability.

Tesla shares dived 6.1% after the event on Thursday and several bad reviews.

With its distinct angular design, the electric truck was greeted with cheers but also bemusement.

But on Saturday Mr Musk tweeted: "146k Cybertruck orders so far, with 42% choosing dual, 41% tri & 17% single motor".

The demand had come despite "no advertising & no paid endorsement" for the truck, he said.

No date has been given for the Cybertruck's release, but analysts said it would not be ready before the end of 2021 at the earliest.

• Tesla's new pickup truck smashed during demo

The industrial-looking vehicle is covered in stainless steel alloy and will be able to go from 0 to 100km/h (62 mph) in about three seconds, Mr Musk said in his presentation in Hawthorne, California.

However, some analysts are concerned about the futuristic design, with Jessica Caldwell of Edmunds' vehicle marketplace saying: "It looks like a truck version of the DeLorean from Back To The Future."

The launch event's "fail" happened during a segment displaying how the truck's stainless steel exterior, and metal windows, could withstand bullets and sledgehammers.

Tesla's head of design, Franz von Holzhausen, proceeded to throw a metal ball at the front left window, causing it to smash.

He repeated the move on the rear left window and the same thing happened. Mr Musk was heard to swear before joking: "Room for improvement."

On Friday Tesla's share price dived by 6%, slashing Mr Musk's personal net worth by $768m (£598m) in a single day, according to Forbes.

The pickup market represents a significant opportunity for Tesla as it improves its battery technology, meaning carrying heavier loads over long distances is now practical.

According to vehicle marketplace Edmunds, large trucks have accounted for 14.4% of new vehicle sales in the US up until October, compared to 12.6% in 2015.

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2019-11-24 10:10:57Z
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Musk touts 146000 orders for Tesla's electric pickup truck - Stars and Stripes

Musk touts 146,000 orders for Tesla's electric pickup truck

LOS ANGELES — Elon Musk says Tesla has received nearly 150,000 orders for its new electric pickup truck since the automaker revealed the futuristic vehicle earlier this week to mixed reviews.

The Tesla CEO tweeted Saturday that the company received 146,000 orders for the wedge-shaped "Cybertruck" since is unveiling Thursday night.

Musk said 17% of the orders are for the single-motor model, 42% are for the dual-motor version and 41% are for the tri-motor model.

The much-hyped unveiling went off script when its supposedly unbreakable window glass splintered twice when hit with a large metal ball. Some analysts panned the truck's blocky, angular looks.

Placing an order costs buyers $100, which Tesla says is fully refundable.

Tesla has said the "Cybertruck," which starts at $39,900, will be in production in 2021.
 

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2019-11-24 05:19:56Z
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