Trump Gets OK to Buy Block of Tiffany Stock

Donald J. Trump, the real estate developer with a few choice parcels on New York’s Fifth Avenue, has obtained government permission to buy more than $15 million worth of stock in Tiffany & Co., sparking speculation that he is about to add another Fifth Avenue jewel to his crown.

Trump said Thursday that he received clearance from the Federal Trade Commission to buy the issues, sparking a 11.2% rise in Tiffany stock.

Trump had sought the clearance Aug. 18, a spokeswoman for the real estate developer said, but she denied that he wanted the stock for anything other than investment purposes.

“The fact is that he thinks Tiffany is a very exciting company that represents a very good investment opportunity for him,” the spokeswoman said. “He is interested in it for investment purposes only.”

Asked if there had been any discussions with Tiffany management, she said “I am not aware of any.”

Securities analysts who follow Tiffany’s said they were surprised by the move, especially in light of rumors last week that the internationally renowned retailer might be targeted for takeover by an overseas purchaser.

In the second fiscal quarter ended July 31, revenue rose to $85.9 million from $62.6 million. Profit in 1988 was up a hefty 54% over the prior year.

The next Tiffany store will be opened in suburban Washington, but the company’s international growth is what really sparkles, analysts said.

Tiffany released a short statement that it had been notified that Trump had filed the documents with the government. Tiffany Chairman William Chaney said he had been advised that the filing was made so that Trump might purchase stock as an investment and not as part of a takeover effort.