LVMH To Buy TAG Heuer for $747M
Sep. 13, 1999
ZURICH, Switzerland (AP) _ Swiss sports watch manufacturer TAG Heuer International SA has accepted a $747 million takeover offer from the French luxury products group LVMH Moet-Hennessy Louis Vuitton.
In its statement Monday announcing the purchase, Tag Heuer said key managers and shareholders representing 38.8 percent of the company's share capital had already indicated they are irrevocably committed to accepting the offer. LVMH has offered 215 francs per share for TAG Heuer shares, a premium of 8.6 percent over Friday's closing price.
LVMH must obtain the acceptance of the holders of at least 50.1 percent of shares. A formal offer will be sent to TAG Heuer's shareholders by Oct. 5, the company said.
In a statement, LVMH said the takeover would offer great opportunities to the management and staff of TAG Heuer.
TAG Heuer is a leading designer, producer and marketer of Swiss sports watches and chronographs, and has been producing timepieces since 1860.