Louis Vuitton owner eyes Tiffany takeover

The company behind Louis Vuitton has approached Tiffany over a possible takeover - with the proposed deal reportedly valuing the jeweller at $14.5bn (£11.3bn).

LVMH, the world's biggest luxury group, said following recent speculation it "confirms that it has held preliminary discussions regarding a possible transaction with Tiffany".

In a brief statement, the company - controlled by French billionaire and Europe's richest man Bernard Arnault - added: "There can be no assurance that these discussions will result in any agreement."

The statement did not put a figure on the proposed offer - which the Financial Times reported would value Tiffany at $14.5bn (£11.3bn).

That compares with its market value of $11.9bn (£9.3bn).

Any deal would add US-based Tiffany to a stable of brands which also includes Christian Dior and Moet & Chandon.

It comes eight years after LVMH bought Italian jeweller Bulgari for €3.7bn (£3.2bn) in 2011.

Tiffany - founded in 1837 - has been struggling with stagnating sales as China's economic woes have weighed on spending by Chinese tourists, who make up a large proportion of luxury goods shoppers.

It also warned earlier this year about the impact of ongoing protests in Hong Kong.