Why Tiffany Stock Just Popped 30%
Turbocharged by a buyout offer, shares of high-end jeweler Tiffany & Co. (NYSE: TIF) leapt out of the gate this morning, and as of 1 p.m. EDT, sit 31.3% above where they closed trading last week.
As Tiffany confirmed this morning, it has received a letter from rival luxury goods holding company LVMH (OTC: LVMHF) offering to buy Tiffany out for $120 per share, in cash. Tiffany management says it is "carefully reviewing the proposal," but has not yet made any decision to accept or reject the offer. Regardless, investors are betting they know what the response will be -- and are bidding Tiffany stock higher in hopes they're right.
Image source: Getty Images.
Source Fool.com
