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The Luxury Battle Brewing Over Tiffany	The Luxury Battle Brewing Over Tiffany
2019-11-04 10:52:08 UTC	2019-11-05 11:18:20 UTC (1 day later)
Good Monday. This year’s DealBook Summit will feature speakers including Bill Gates, Hillary Clinton, Dennis Muilenberg of Boeing and Makan Delrahim, the Justice Department’s antitrust chief. Apply to attend here. (Was this email forwarded to you? Sign up here.)	Good Monday. This year’s DealBook Summit will feature speakers including Bill Gates, Hillary Clinton, Dennis Muilenberg of Boeing and Makan Delrahim, the Justice Department’s antitrust chief. Apply to attend here. (Was this email forwarded to you? Sign up here.)
LVMH of France has offered to buy Tiffany, the famous jewelry seller, for $14.4 billion, Michael de la Merced and Vanessa Friedman of the NYT report. But Tiffany is likely to ask for more money, people close to the company say, setting up a potentially bruising fight.	LVMH of France has offered to buy Tiffany, the famous jewelry seller, for $14.4 billion, Michael de la Merced and Vanessa Friedman of the NYT report. But Tiffany is likely to ask for more money, people close to the company say, setting up a potentially bruising fight.
LVMH had proposed paying $120 a share for Tiffany, a 22 percent premium to where its stock closed on Friday. LVMH confirmed this morning that it had approached Tiffany, but warned that a deal wasn’t certain.	LVMH had proposed paying $120 a share for Tiffany, a 22 percent premium to where its stock closed on Friday. LVMH confirmed this morning that it had approached Tiffany, but warned that a deal wasn’t certain.
A deal could give LVMH critical mass in the jewelry sector, by adding to its roster of brands like Bulgari, Hublot and Tag Heuer. It would also be the first major non-fashion American brand acquired by LVMH, which would help it expand in the U.S., one of its biggest markets.	A deal could give LVMH critical mass in the jewelry sector, by adding to its roster of brands like Bulgari, Hublot and Tag Heuer. It would also be the first major non-fashion American brand acquired by LVMH, which would help it expand in the U.S., one of its biggest markets.
Tiffany has struggled of late with stagnant sales, and like other luxury companies has suffered from a slowdown in tourism and worries about falling purchases by Chinese buyers.	Tiffany has struggled of late with stagnant sales, and like other luxury companies has suffered from a slowdown in tourism and worries about falling purchases by Chinese buyers.
But Tiffany will probably say that it’s worth more, with people close to the company pointing to the $136 that its share price reached a little over a year ago. Does LVMH have the stomach to pursue what could become a very expensive hostile bid?	But Tiffany will probably say that it’s worth more, with people close to the company pointing to the $136 that its share price reached a little over a year ago. Does LVMH have the stomach to pursue what could become a very expensive hostile bid?
The public market debut of Saudi Aramco, Saudi Arabia’s state-owned oil producer, is expected to be announced soon. But the huge offering looks likely to fall well short of the goals first laid out years ago, Michael de la Merced and Stanley Reed write in the NYT.	The public market debut of Saudi Aramco, Saudi Arabia’s state-owned oil producer, is expected to be announced soon. But the huge offering looks likely to fall well short of the goals first laid out years ago, Michael de la Merced and Stanley Reed write in the NYT.
Aramco will probably go public on Saudi Arabia’s local exchange, selling about 3 percent of its shares. That will raise billions of dollars for the kingdom — but without the fanfare that its crown prince and de facto ruler, Mohammed bin Salman, had hoped for.	Aramco will probably go public on Saudi Arabia’s local exchange, selling about 3 percent of its shares. That will raise billions of dollars for the kingdom — but without the fanfare that its crown prince and de facto ruler, Mohammed bin Salman, had hoped for.
Most vexing for Prince Mohammed: Aramco’s valuation. He has long insisted that the company is worth $2 trillion. But bankers on the deal have told the Saudis that about $1.5 trillion is the best they can now hope for. An unnamed source close to Aramco told the FT, “The market is very unforgiving.”	Most vexing for Prince Mohammed: Aramco’s valuation. He has long insisted that the company is worth $2 trillion. But bankers on the deal have told the Saudis that about $1.5 trillion is the best they can now hope for. An unnamed source close to Aramco told the FT, “The market is very unforgiving.”
Some of the company’s troubles are geopolitical. Climate concerns have raised doubts about the future of fossil fuels, while attacks on key Aramco plants last month left questions about further security vulnerabilities.	Some of the company’s troubles are geopolitical. Climate concerns have raised doubts about the future of fossil fuels, while attacks on key Aramco plants last month left questions about further security vulnerabilities.
But the biggest issue is Prince Mohammed’s expectations. Some people involved in the deal warn that whether Aramco goes public at all — the process has stalled several times — will depend on whether the Saudis accept financial reality.	But the biggest issue is Prince Mohammed’s expectations. Some people involved in the deal warn that whether Aramco goes public at all — the process has stalled several times — will depend on whether the Saudis accept financial reality.
The Defense Department on Friday awarded its $10 billion cloud computing contract to Microsoft over Amazon, Kate Conger, David Sanger and Scott Shane of the NYT report.	The Defense Department on Friday awarded its $10 billion cloud computing contract to Microsoft over Amazon, Kate Conger, David Sanger and Scott Shane of the NYT report.
The decision was a surprise. Amazon had been considered the front-runner: It built cloud services for the C.I.A., and it dominates the industry. Instead, Microsoft will be the sole contractor responsible for transforming the Pentagon’s cloud computing systems over the next decade.	The decision was a surprise. Amazon had been considered the front-runner: It built cloud services for the C.I.A., and it dominates the industry. Instead, Microsoft will be the sole contractor responsible for transforming the Pentagon’s cloud computing systems over the next decade.
Getting to this point has been messy. Amazon, Microsoft, IBM, Oracle and Google had vied for the contract, and the bidding process featured intense lobbying efforts and legal challenges.	Getting to this point has been messy. Amazon, Microsoft, IBM, Oracle and Google had vied for the contract, and the bidding process featured intense lobbying efforts and legal challenges.
President Trump also stirred things up, taunting Amazon’s Jeff Bezos and saying that there were other “great companies” that should have a chance at the contract. A new book about the former defense secretary Jim Mattis claims Mr. Trump told him to push Amazon out of the bidding.	President Trump also stirred things up, taunting Amazon’s Jeff Bezos and saying that there were other “great companies” that should have a chance at the contract. A new book about the former defense secretary Jim Mattis claims Mr. Trump told him to push Amazon out of the bidding.
It’s a big moment for Microsoft, giving the company — which is turning huge profits from its growing cloud business — a chance to undermine Amazon’s lead in the sector. Amazon said it was evaluating its options, which could mean that it challenges the decision.	It’s a big moment for Microsoft, giving the company — which is turning huge profits from its growing cloud business — a chance to undermine Amazon’s lead in the sector. Amazon said it was evaluating its options, which could mean that it challenges the decision.
Boeing and its allies helped craft legislation to undercut the government’s role in approving airplane designs. A report by Natalie Kitroeff and David Gelles of the NYT investigates how that played out.	Boeing and its allies helped craft legislation to undercut the government’s role in approving airplane designs. A report by Natalie Kitroeff and David Gelles of the NYT investigates how that played out.
• In the past, F.A.A. officials could decide whether to delegate oversight to the company or to maintain control, depending on the importance of a system or concerns about safety, Ms. Kitroeff and Mr. Gelles explain.	• In the past, F.A.A. officials could decide whether to delegate oversight to the company or to maintain control, depending on the importance of a system or concerns about safety, Ms. Kitroeff and Mr. Gelles explain.
• But “Boeing and its trade associations explained that streamlining certification would make American aerospace companies more competitive with overseas rivals, by allowing them to develop planes more efficiently.”	• But “Boeing and its trade associations explained that streamlining certification would make American aerospace companies more competitive with overseas rivals, by allowing them to develop planes more efficiently.”
• “The lobbying effort barely registered in the country’s vast political machine. Boeing’s push, and the use of industry language in the crucial paragraphs, was standard amid the deregulatory drive by many businesses.”	• “The lobbying effort barely registered in the country’s vast political machine. Boeing’s push, and the use of industry language in the crucial paragraphs, was standard amid the deregulatory drive by many businesses.”
• Ultimately the lobbying led to a bill, signed into law last year, that would hand more responsibility to manufacturers.	• Ultimately the lobbying led to a bill, signed into law last year, that would hand more responsibility to manufacturers.
• But “in a stark warning as the bill was being written, the Federal Aviation Administration said that it would ‘not be in the best interest of safety.’”	• But “in a stark warning as the bill was being written, the Federal Aviation Administration said that it would ‘not be in the best interest of safety.’”
• Now, in the wake of the 737 Max jet catastrophe, “some lawmakers who originally supported the legislation are backing away” from it, Ms. Kitroeff and Mr. Gelles write.	• Now, in the wake of the 737 Max jet catastrophe, “some lawmakers who originally supported the legislation are backing away” from it, Ms. Kitroeff and Mr. Gelles write.
Ever since Saudi operatives killed the journalist Jamal Khashoggi, Amazon has gone quiet about ambitions to work closely with the country. Marc Fisher and Jonathan O’Connell of the WaPo take a look.	Ever since Saudi operatives killed the journalist Jamal Khashoggi, Amazon has gone quiet about ambitions to work closely with the country. Marc Fisher and Jonathan O’Connell of the WaPo take a look.
Amazon had made no secret of its Saudi ambitions. It first highlighted its interest in the region when it acquired the e-commerce company Souq.com in 2017, and had been working toward a $1 billion deal to build data centers in the kingdom.	Amazon had made no secret of its Saudi ambitions. It first highlighted its interest in the region when it acquired the e-commerce company Souq.com in 2017, and had been working toward a $1 billion deal to build data centers in the kingdom.
But there’s been no more word about a tie-up since Jeff Bezos, who owns the WaPo, became the target of criticism from Saudi online trolls. The reason he’s fallen from favor remains unclear, the WaPo explains:	But there’s been no more word about a tie-up since Jeff Bezos, who owns the WaPo, became the target of criticism from Saudi online trolls. The reason he’s fallen from favor remains unclear, the WaPo explains:
• “Some business leaders and Saudi insiders say Saudi antagonism toward Bezos stems from the billionaire’s decision to join others in spurning the crown prince’s international business showcase, informally known as Davos in the Desert, both last year and again this month.”	• “Some business leaders and Saudi insiders say Saudi antagonism toward Bezos stems from the billionaire’s decision to join others in spurning the crown prince’s international business showcase, informally known as Davos in the Desert, both last year and again this month.”
• “Others say the Saudis went on the offensive against Bezos because they believed, incorrectly, that he directed The Post’s coverage of the Khashoggi murder.” (Mr. Khashoggi was an opinion columnist for the newspaper.)	• “Others say the Saudis went on the offensive against Bezos because they believed, incorrectly, that he directed The Post’s coverage of the Khashoggi murder.” (Mr. Khashoggi was an opinion columnist for the newspaper.)
• An exposé earlier this year detailing an extramarital affair by Mr. Bezos raised speculation that that the Saudi government had gained access to the Amazon’s C.E.O.’s phone and passed on compromising photographs, though no evidence has emerged to prove it.	• An exposé earlier this year detailing an extramarital affair by Mr. Bezos raised speculation that that the Saudi government had gained access to the Amazon’s C.E.O.’s phone and passed on compromising photographs, though no evidence has emerged to prove it.
“No one on either side is willing to declare the ties between Amazon and the Saudis permanently severed,” Mr. Fisher and Mr. O’Connell note.	“No one on either side is willing to declare the ties between Amazon and the Saudis permanently severed,” Mr. Fisher and Mr. O’Connell note.
Decades after his conviction for violating federal securities and tax laws, the onetime financier is now known for philanthropy. But he’s also finding investment success — thanks in part to friends in the Trump administration, Eric Lipton and Jesse Drucker of the NYT report.	Decades after his conviction for violating federal securities and tax laws, the onetime financier is now known for philanthropy. But he’s also finding investment success — thanks in part to friends in the Trump administration, Eric Lipton and Jesse Drucker of the NYT report.
• “These days, the Milken Institute is a leading proponent of a new federal tax break that was intended to coax wealthy investors to plow money into distressed communities known as ‘opportunity zones,’” Mr. Lipton and Mr. Drucker write.	• “These days, the Milken Institute is a leading proponent of a new federal tax break that was intended to coax wealthy investors to plow money into distressed communities known as ‘opportunity zones,’” Mr. Lipton and Mr. Drucker write.
• “Mr. Milken, it turns out, is in a position to personally gain from some of the changes that his institute has urged the Trump administration to enact.”	• “Mr. Milken, it turns out, is in a position to personally gain from some of the changes that his institute has urged the Trump administration to enact.”
• In one case, a real-estate site in which Mr. Milken invested was chosen as an opportunity zone at the direction of Treasury Secretary Steven Mnuchin, a longtime friend, who overrode the department’s guidelines, the NYT reports.	• In one case, a real-estate site in which Mr. Milken invested was chosen as an opportunity zone at the direction of Treasury Secretary Steven Mnuchin, a longtime friend, who overrode the department’s guidelines, the NYT reports.
~~• Mr. Mnuchin is also urging President Trump to pardon Mr. Milken, as is Rudy Giuliani, who led the financier’s conviction on ~~insider-trading~~ ~~charges.~~~~	• Mr. Mnuchin is also urging President Trump to pardon Mr. Milken, as is Rudy Giuliani, who led the financier’s conviction on violating federal securities and tax laws.
• A spokesman for Mr. Milken disputed that he used either the Milken Institute or his connections in Washington to benefit his investments.	• A spokesman for Mr. Milken disputed that he used either the Milken Institute or his connections in Washington to benefit his investments.
The law firm Freshfields Bruckhaus Deringer has hired four deal lawyers from an American rival, Cleary Gottlieb: Ethan Klingsberg, who has represented Google and Staples; Meredith Kotler; Pamela Marcogliese; and Paul Tiger.	The law firm Freshfields Bruckhaus Deringer has hired four deal lawyers from an American rival, Cleary Gottlieb: Ethan Klingsberg, who has represented Google and Staples; Meredith Kotler; Pamela Marcogliese; and Paul Tiger.
Lazard has reportedly named Jean-Louis Girodolle as the C.E.O. of its French arm, replacing Matthieu Pigasse.	Lazard has reportedly named Jean-Louis Girodolle as the C.E.O. of its French arm, replacing Matthieu Pigasse.