New sources suggest Moncler not in talks for Burberry takeover
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A new report has suggested that Italian outerwear specialist Moncler is not in talks to take over British heritage brand Burberry. This is according to Reuters, which cited four sources close to the matter responding to prior media speculation.
Rumours of the alleged acquisition talks began circulating earlier this month when industry blog Miss Tweed reported “growing industry chatter” had hinted that the Italian luxury brand was on the verge of a takeover. According to the site, the move was believed to have been backed by LVMH CEO, Bernard Arnault, who was said to have been “keen” on the potential deal.
Immediately following the news, Burberry shares rose up to 8 percent, despite Moncler telling various media that it would not comment on “unsubstantiated rumours”. Regardless, the report underlined Burberry’s current vulnerability of being taken over, particularly in relation to its current financial position in the face of waning luxury demand.
Earlier this year, Abrdn investment manager, Sasha Kachanova, told The Telegraph: “Burberry remains a potential takeover target, particularly at its current valuation. As the sole British brand of scale operating independently – a rarity in the luxury industry – it boasts a rich heritage and the opportunity to enhance its iconic product lines and accessories.”
Burberry will report its half year results on Thursday, at which time CEO Joshua Schulman is expected to provide a strategy update.