Leadership and Leading: A Case Study of LVMH and Tiffany Negotiation

Leadership and Leading

INTRODUCTION.
 Leadership can be defined as a process and action that leaders do for leading a group of people on right
direction with the main aim of making them able to accomplish their goals.
 This presentation is going to discuss negotiation case of LVMH and Tiffany & Co in which the great
leader of LVMH company played a masterstroke and by using his leadership skills, he made negotiation
case in his favour.

Negotiation case by considering ethics
In the case of LVMH & Tiffany: Master negotiator and leader of LVMH, Mr Arnault played very interesting
play in negotiation process with Tiffany.
In this case, LVMH that is known as the world leading luxury group, announced to acquire globally known
luxury jewellery brand Tiffany & Co shared for $135 per share in cash and this announcement was done in
the year of 2019. This deal was much larger than US$13 billion as share value as per $135 was approximate
value of US$16.2 billion.

CONT...
 Mr. Arnault the best negotiator knew that this negotiation is going to be long and he used his skills of
negotiation and said that now he will buy each share at the price of US$130 and it binds Tiffany to
open their books.
 Both boards agreed that LVMH will purchase shares of Tiffany for US$135.
 Now, by comparing its actual value of US$140-160, it can be said that, LVMH made great negotiation
and made a deal of profit.