Tiffany shares jump on takeover speculation

NEW YORK (Reuters) - Shares of Tiffany & Co. Inc. (TIF.N: Quote, Profile, Research, Stock Buzz) climbed as much as 6.8 percent and its options volume surged on Monday on renewed speculation the fine jewelry retailer could be a takeover target.

Tiffany shares closed up nearly 4 percent, or $1.93, at $51.91, after rising as high as $53.36 on the New York Stock Exchange.

Renewed chatter is that "LVMH is interested in acquiring Tiffany," said Paul Foster, options strategist at theflyonthewall.com, a Web site that tracks daily equity option and stock movement.

French-based LVMH Moet Hennessy Louis Vuitton (LVMH.PA: Quote, Profile, Research, Stock Buzz), which sells luxury brands Fendi, TAG Heuer and Chaumet, has been mentioned as a possible buyer in earlier reports.

Tiffany spokesman Mark Aaron said the New York-based company does not comment on stock activity. A LVMH spokesman said the company does not comment on market rumors.

"According to our computer model, Tiffany share volume soared 350 percent to 5.5 million (late on Monday) as takeover fever hit the company," said Jon Najarian, co-founder of Web site optionmonster.com.

A total of 5.6 million shares traded in Tiffany in composite trading, according to Reuters data.

"Its option turnover was even more dramatic," Najarian added. Throughout the day, investors focused on Tiffany calls, giving them the right to buy shares at a given price and time, as many placed bets on further stock gains.

In all, 21,395 calls compared to 1,951 puts changed hands in Tiffany, nearly 11 times its average daily volume, according to market research firm Track Data.