Tiffany Takeover Talk, Hong Kong Eclipse Richemont’s Alber Elbaz JV

LONDON — All eyes are on Richemont, but not because of its new deal with Alber Elbaz. Markets are aflutter with the now-confirmed speculation that LVMH Moët Hennessy Louis Vuitton is making a play for Tiffany & Co., and the impact that could have on Cartier parent Compagnie Financière Richemont, which dominates the hard luxury sector. On Monday, Richemont’s shares closed up 2.4 percent to 76.78 Swiss francs, while those in LVMH slipped as the company confirmed it had held “preliminary” talks about a takeover of Tiffany. Instead of debating the merits of the new joint venture with Elbaz, known as AZfashion, observers were asking what sort of pressure a tie-up between LVMH and the New York-based Tiffany & Co. could place on Richemont, especially in the U.S., where LVMH has room to expand its hard luxury offer, and where it is fast making inroads. Two weeks ago, LVMH chief Bernard Arnault cut the ribbon on a Louis Vuitton leather goods workshop in Texas, together with President Donald Trump. The parent of Cartier and Van Cleef & Arpels derives some 80 percent of its earnings from fine jewelry, and 50 percent of its sales from those two fine jewelry brands alone. The high-end watch brands

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