Burberry stocks rose by over 7% following reports of a potential takeover by Moncler.
- The jump follows a report by Miss Tweed about Moncler’s interest in acquiring Burberry.
- Despite the speculation, Moncler has refused to comment on these takeover rumours.
- Earlier this year, analysts predicted Burberry might face a takeover due to declining share prices.
- Burberry’s market value recently dropped to its lowest in 15 years, raising concerns about its luxury brand status.
Burberry’s stock saw an increase of more than 7%, spurred by reports suggesting that Moncler, an Italian competitor, is considering a bid for the company. This significant rise was initiated by a report from Miss Tweed, which discussed Moncler’s potential strategy to create a leading outdoor clothing company through this takeover.
However, Moncler has maintained silence, having told The Guardian that it does not comment on ‘unsubstantiated rumours.’ This stance leaves investors and market analysts in a state of speculation about the strategic moves Moncler may or may not be planning.
Back in April, city analysts had already hinted at the possibility of a takeover threat facing Burberry. This was due to its share price having decreased by 20% since the start of the year, raising red flags about the company’s market position.
Burberry was removed from the FTSE 100 index in August, marking the first time in 15 years it has not been part of this prestigious group. This removal reflects concerns about Burberry’s financial health and stable standing in the luxury market sector.
Just last month, Burberry’s market valuation fell to its lowest point in over a decade. This drop is attributed to growing doubts among analysts about Burberry’s ability to sustain its status as a high-end luxury brand.
The speculation surrounding Moncler’s interest in Burberry underscores existing concerns about Burberry’s market standing.
