Author Topic: TIF - Tiffany & Co  (Read 10214 times)

Cigarbutt

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Re: TIF - Tiffany & Co
« Reply #10 on: June 03, 2020, 05:28:54 AM »
For those who speculatively follow, Women’s Wear Daily reported rumors suggesting that LVMH may have second thoughts.
So still speculative but at least the spread has improved.


fareastwarriors

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Re: TIF - Tiffany & Co
« Reply #11 on: June 03, 2020, 12:04:49 PM »

John Hjorth

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Re: TIF - Tiffany & Co
« Reply #12 on: June 04, 2020, 06:22:11 AM »
LVMH Press Release [June 4th 2020].

"Wool in mouth" message?
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Dalal.Holdings

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Re: TIF - Tiffany & Co
« Reply #13 on: June 04, 2020, 06:27:58 AM »
Hope TIF takes the breakup fee and stays as an independent, American brand.

Cigarbutt

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Re: TIF - Tiffany & Co
« Reply #14 on: June 04, 2020, 07:36:47 AM »
Hope TIF takes the breakup fee and stays as an independent, American brand.
Do you mean:
-so it can become great again?
-because it should stick to its guns?

clutch

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Re: TIF - Tiffany & Co
« Reply #15 on: June 04, 2020, 07:58:42 AM »
I'm also looking to own this one as an independent company if the share price crashes down from this point.

fareastwarriors

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Re: TIF - Tiffany & Co
« Reply #16 on: June 04, 2020, 09:36:18 AM »
I'm also looking to own this one as an independent company if the share price crashes down from this point.

At what price would this be a buy for you? Sub 100? Sub 80?

clutch

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Re: TIF - Tiffany & Co
« Reply #17 on: June 04, 2020, 11:19:51 AM »
I'm also looking to own this one as an independent company if the share price crashes down from this point.

At what price would this be a buy for you? Sub 100? Sub 80?

Somewhere between? I haven't updated valuation for a couple of years but I was happy to add shares when it was hovering around $90 about two years ago.

SHDL

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Re: TIF - Tiffany & Co
« Reply #18 on: June 04, 2020, 03:56:23 PM »
https://www.wsj.com/articles/lvmh-reviews-tiffany-deal-amid-coronavirus-riots-11591284202

So it seems that LVMH doesn’t really have the legal right to walk away from the deal but they are hoping to get themselves a better price by claiming that Tiffany is violating the terms of the contract by tripping a debt covenant. Good luck with that...

John Hjorth

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Re: TIF - Tiffany & Co
« Reply #19 on: June 05, 2020, 04:08:24 AM »
https://www.wsj.com/articles/lvmh-reviews-tiffany-deal-amid-coronavirus-riots-11591284202

So it seems that LVMH doesn’t really have the legal right to walk away from the deal but they are hoping to get themselves a better price by claiming that Tiffany is violating the terms of the contract by tripping a debt covenant. Good luck with that...

The whole situation with this hung [<- ?] deal is interesting. I'm sure I'll learn something about Mr. Arnault - his personality and his modus operandi - from it. Some time ago Cigarbutt and I were having fun in the "Tell me a joke..." topic about goats, and Cigarbutt used this expression about Mr. Arnaults personality : "... the subtle intricacies of the wolf in the cashmere coat's personality ...".

In short, Mr. Arnault didn't get to where he now is by being nice. He is extremely ambitious. Especially in his early years he was more some kind of corporate raider, where he also lost a few battles [Gucci and Hermes comes to mind]. He is a serial acquirer - a gem collector [<- pun intended].

- - - o 0 o - - -

Among Danes there exist a phrase used to express lack of trustworthyness at another person : "I wouldn't trade a second-hand car with him/her.".

So I've been thinking a bit about if I would trade a second-hand car with Mr. Arnault. Left that line of thinking quite quickly because it appeared highly hypothetical & of no relevance, because :

1. He has likely no interest in buying a second-hand car at all [the only second-hand things of interest to him are pieces af art],
2. He has likely no interest at all in a car that I can afford to buy, &
3. If I were to buy his second-hand car, I would likely not be able to without posting our home as collateral for some debt, which I have promised never to do again,

because he's not only a yacht owner, in fact he controls the shipyard, where his yacht is built. [ : - ) ]

- - - o 0 o - - -

Dalal.Holdings has mentioned a break-up fee. I looked it up. It's USD 575 M, and mutual. I would personally be very surprised, if LVMH backs out from here. To me, if the situation evolves to litigation or arbitration, everything can happen. [I'm speculating/guessing.]
« Last Edit: June 05, 2020, 04:13:45 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai