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  1. ITV Report

LVMH confirms aim to buy jeweller Tiffany & Co

The strong dollar has made Tiffany products more expensive for consumers outside the US. Credit: AP

French luxury group LVMH says it has held preliminary discussions to purchase US jeweller Tiffany & Co.

The purchase would add another household name to LVMH’s plethora of upscale brands. It owns fashion names such as Christian Dior, Fendi, and Givenchy as well as watchmaker Tag Heuer.

It would also give LVMH a much broader foothold in the United States and broaden its offerings in jewellery.

LVMH warned that "there can be no assurance that these discussions will result in any agreement".

LVMH has held preliminary discussions to purchase Tiffany & Co. Credit: AP/Wilfredo Lee, File

Tiffany said the offer was for 120 US dollars (£94) a share, or about 14.5 billion dollars (£11.3 billion).

Shares in Tiffany jumped 31% to 128.81 dollars (£111.38) in pre-market trading in New York.

The offer comes as Tiffany has struggled with stagnating sales as China’s slowing economy has weighed on spending by Chinese tourists, who make up a substantial portion of luxury spending.

The strong dollar has also made Tiffany products more expensive for consumers outside the US.

LVMH competes with the Kering Group, which owns Gucci and Saint Laurent, and Richemont SA, which owns Cartier.

Representatives of Tiffany have declined to comment on the report.