Tiffanyâs Diamond Ring Popularity Attracts High Stakes
Friday, April 20th, 2012
Tiffanyâs woke up to a surprise a few days ago when it realised that over 5% of its stake was picked up by the sovereign wealth fund of Qatar. The company has performed well in spite of the recession and economic downturn and this new injection of money could take it even higher in the luxury goods ladder. It was only when the filing was done that they realised the value of the stake the Qatari fund held. The rumour mill had been rife with prospects of increased investment but it is only now that the true pictre of who and how much has emerged.
Tiffanyâs has a wide range of luxury goods and jewellery to offer all over the world today but it is its classic solitaire diamond ring which it made so popular that it is always associated with. They had predicted that sales could go up by 10% this year and as such, they really were seen as a very attractive investment option for many wealth funds. Of course, this also makes the Qatar wealth fund the largest single investor in the company. This isnât its first investment in luxury goods companies around the world but it is certainly its first in America. They have previously invested in Harrodâs, London and LVMH which is the group owning the brands Dom Perignon, Louis Vuitton and Dior. They also own stakes in Glencore, Iberdrola, Lagardere and Miramax. While they have bought certain names outright, in others, they own a sizeable percentage or are a part of a consortium that has bought into the company.
Tiffanyâs woke up to a surprise a few days ago when it realised that over 5% of its stake was picked up by the sovereign wealth fund of Qatar. The company has performed well in spite of the recession and economic downturn and this new injection of money could take it even higher in the luxury goods ladder. It was only when the filing was done that they realised the value of the stake the Qatari fund held. The rumour mill had been rife with prospects of increased investment but it is only now that the true pictre of who and how much has emerged.
Tiffanyâs has a wide range of luxury goods and jewellery to offer all over the world today but it is its classic solitaire diamond ring which it made so popular that it is always associated with. They had predicted that sales could go up by 10% this year and as such, they really were seen as a very attractive investment option for many wealth funds. Of course, this also makes the Qatar wealth fund the largest single investor in the company. This isnât its first investment in luxury goods companies around the world but it is certainly its first in America. They have previously invested in Harrodâs, London and LVMH which is the group owning the brands Dom Perignon, Louis Vuitton and Dior. They also own stakes in Glencore, Iberdrola, Lagardere and Miramax. While they have bought certain names outright, in others, they own a sizeable percentage or are a part of a consortium that has bought into the company.
