Tod's: a future takeover by LVMH?
(CercleFinance.com) - The group announced on 23 April that LVMH had increased its stake in Tod's to 10%.
Increasing its stake to 10% of the Italian luxury group's capital is therefore the starting point for a cooperation that could lead to a future takeover, Invest Securities says.
Diego della Valle, the owner of Tod's, confirmed at a meeting organised by the FT that LVMH is a potential buyer, but that the timing is uncertain. The analyst who follows the case says that if Tod's is ever sold, it will be to LVMH.
However, there is no hurry and in our opinion, neither Tod's nor LVMH intend to force the decision. Considering that LVMH does not intend to invest in the short - or even medium - term in a more complex issue than it seems, while the world leader in luxury goods first needs to focus on the integration of Tiffany, the broker adds.
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