LVMH Moët Hennessy Louis Vuitton merges with Tiffany
Apparently low interest rates are one of the best christmas presents of the year so far. What would you do if you could enlarge your business at almost zero cost? Withouth any doubt the vast majority of us would say yes. And thats exactly what LVMH Corporation did with Tiffany:
"LVMH Moët Hennessy Louis Vuitton SE (“LVMH”), the world’s leading luxury group and Tiffany & Co. (NYSE: TIF ) (“Tiffany”), the global luxury jeweler, today announced that the companies have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion."
But the best part is that this colision will be fiannced by the issuance of bond with 1% interest rate: "Arnault told Reuters that LVMH would finance the purchase with debt, adding the group could currently pay interest of less than 1% to issue bonds."
Thats what I call a 100% deal.
What is gonna happen now? LVMH representative were scared that Hong Kong protests may affect Tiffany results... But if the agreement has been reached, things shouldn't be so bad! Worth following the value, however, it can be late to purchase...
On the other hand, for the last few years, we can see a general and sustained growth since December 2016, when the four EMA curves began rising simultaneously.
Looking at the MACD indicator and Relative Volatility Index , a short-term correction could be expected.
"LVMH Moët Hennessy Louis Vuitton SE (“LVMH”), the world’s leading luxury group and Tiffany & Co. (NYSE: TIF ) (“Tiffany”), the global luxury jeweler, today announced that the companies have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion."
But the best part is that this colision will be fiannced by the issuance of bond with 1% interest rate: "Arnault told Reuters that LVMH would finance the purchase with debt, adding the group could currently pay interest of less than 1% to issue bonds."
Thats what I call a 100% deal.
What is gonna happen now? LVMH representative were scared that Hong Kong protests may affect Tiffany results... But if the agreement has been reached, things shouldn't be so bad! Worth following the value, however, it can be late to purchase...
On the other hand, for the last few years, we can see a general and sustained growth since December 2016, when the four EMA curves began rising simultaneously.
Looking at the MACD indicator and Relative Volatility Index , a short-term correction could be expected.
Views and opinions for informational purposes only. Remember, past performance is no guarantee of future results.