Beijing time October 28th, according to people familiar with the matter, the US luxury goods retailer Tiffany is expected to reject the $14 billion 500 million takeover offer of French luxury goods giant LVMH, saying the offer underestimated its value.

Tiffany's advisers are still assessing the indicative offer of Lu Wei Ming Xuan, the French richest man Bernard Arnott, on Sunday, and the board of directors will consider the next move.

The full cash offer was raised earlier this month, and the offer for Tiffany shares was about $120, a premium of about 30% compared to the Tiffany shares.

However, since the stock market has risen since then, the premium has now narrowed to 22%. The offer is also far below the closing high of $139.50 in July 2018.