OREANDA-NEWS. French group Louis Vuitton Moët Hennessy (LVMH) is ready to pay for each share of the American jewelry manufacturer Tiffany & Co. at $ 120, according to the Wall Street Journal (WSJ), citing sources aware of the proposal. Tiffany’s total value, therefore, could be $ 14.5 billion, WSJ notes. The same amount was also called by Bloomberg sources.

According to sources in both publications, LVMH intends to pay in full for Tiffany shares in cash. On October 26, Bloomberg announced that LVMH had made an official offer to Tiffany, however, the possible transaction price wasn't disclosed then. On October 28, LVMH officially confirmed the start of negotiations, but didn't provide any details.

The price of $ 120 per share, which the publications write about, is 22.8% higher than the value of Tiffany shares at the close of trading on the New York Stock Exchange on Friday, October 25. After reports of a possible deal appeared, the value of securities at the premarket increased by about 20%. However, British media sources believe that the LVMH proposal will be rejected, considering the estimate of $ 120 per share underestimated. In July 2018, Tiffany's stock price hit a historic high of $ 141.6.