The French owner of Louis Vuitton has confirmed talks are underway with US jeweller Tiffany & Co about a possible takeover.
LVMH acknowledged recent “market rumours” in the announcement, in an apparent reference to reports of an £11.3bn ($14.5bn) preliminary non-binding offer earlier this month.
Paris-listed LVMH shares were trading 1.2% higher at around 8.30am in London, with the deal reported to be potentially its biggest acquisition to date.
The French luxury goods giant has been looking for a way into the US market for years, one source told Reuters.
The multinational, which owns Christian Dior, Givenchy, Fendi and other brands, is run by the business magnate Bernard Arnault, one of the richest individuals in the world.
New York-listed Tiffany, famous for its diamond engagement rings, is said to have hired advisers to review the offer.
LVMH said: “In light of recent market rumours, the LVMH Group confirms that it has held preliminary discussions regarding a possible transaction with Tiffany. There can be no assurance that these discussions will result in any agreement.”