Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Big Tiffany Shareholder Sells A Bit

Tiffany Gift Box
Photo By: minxlj

As regular readers know, we follow shares of Tiffany & Co very closely—perhaps obsessively—at NetNet.

So we were intrigued to learn that Peter May of the Trian Fund sold 40,000 shares recently at an average price of just over $71.67. May predicted that Tiffany shares would go to $100 a share back in May.


The stock was then trading at around $70 a share.

The stock rallied as word of May’s prediction spread. But we immediately noted our skepticism.

Tiffany does around 80 percent of its business during the November to December holiday season—making it highly exposed to economic downturns that strike in the later part of the year.

Investors worried about the economy in the second half of the year and in 2012 may want to exercise caution.

May is still a very large owner of Tiffany, of course. After yesterday’s sale—which was disclosed in an SEC filing—Trian has 4,677,843 shares, making it the fourth largest holder of the stock.

For several weeks there have been rumors that Tiffany might be a takeover target. Fifth Third Asset Management said that Tiffany might command as much as a 40 percent premium in an acquisition.

That chatter doesn’t seem to be helping Tiffany today. Shares were down by around 6 percent at pixel-time.

Tiffany, which makes the press go through an online form for comment, didn't get back to me right away. Doubt they will.

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