The jeweller's stock-market capitalization was some $11.9 billion at the end of trading on Wall Street Friday. Its sales revenue rose 6.5% to $4.4 billion over the last fiscal year and it employed 14,000 people as of January 31. Tiffany - whose growth is restricted by the strong dollar and a drop in tourist spending - has asked for advice on LMVH's offer from major banks, the source added, confirming reports by Bloomberg.
LVMH did not immediately respond to AFP's request for comment, while a spokesperson for Tiffany refused to comment on "rumors and speculation". The purchase of Tiffany by LMVH would be one of the largest acquisitions by the French group, which is present in several different sectors - from fashion to wine, perfumes and cosmetics.
The discussions between the two companies come just days after LMVH owner billionaire Bernard Arnault inaugurated a Louis Vuitton factory in south Texas alongside US president Donald Trump and his daughter Ivanka. If the purchase does go through, it would also strengthen the company's position in the jewellery sector. Tiffany's Bulgari brand - bought for $5.2 billion in 2011 - competes with Cartier and Van Cleef & Arpels, both owned by Suiss group Richemont.