Tiffany shares rose as much as 7% on news that LVMH Moet Hennessy (LVMUY) is interested in buying the company. Although LVMH won’t comment, is a takeover of the luxury retailer a possibility – or is something else driving this stock higher?
Nelson Peltz, who owns a 5% stake in Tiffany’s (TIF), could have a grand plan to restructure the company, Pete Najarian says. He thinks Peltz is the reason for today’s surge. “Tiffany’s does not trade on a normal basis the way they did today,” he says.
Jeff Macke isn’t convinced a buyout is coming, but he would get long TIF anyway. If it can turn its Japanese business around, the stock should go even higher, he says.
Like it or not, the global economy is disproportionately propelled by the rich, Guy Adami says. And that bodes well for companies like Tiffany’s, which can see great upside even on tumultuous days for the overall market.
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Trader disclosure: On June 25 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
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