British brand Burberry fights off US takeover - but rumours cause spike in shares
BURBERRY, known for its British heritage and trench coats, is reported to have rejected multiple takeover bids by US brand Coach.
News of the attempted purchase by handbag-maker Coach Inc broke on Sunday
The attempted purchase by handbag-maker Coach Inc was reported on Sunday.
The British luxury label sells clothing, cosmetics and perfumes such as Burberry Brit Rhythm.
If the companies combined their joint value would be more than $20 billion.
In November it was revealed that Burberry’s half-year profits had slumped 24 per cent.
The British luxury label sells clothing, cosmetics and perfumes such as Burberry Brit Rhythm
The company reported underlying pre-tax profit of £146million in the six months to September 30, down from £151.7million over the same period last year.
The firm has embarked on a turnaround plan that has included simplifying product lines and cutting costs.
The luxury brand, headed up by Yorkshire-born CEO and chief creative Christopher Bailey, is known for its lavish and star-studded Christmas ads.
It has also worked with British model Kate Moss numerous times over the years - as well a actor Eddie Redmayne who was recently honoured with an OBE.
The Financial Times report said Coach’s proposals were informal.
It added that it was not clear whether the two brands engaged in any serious talks.
However, Burberry shares were climbing this morning, and opened over two per cent higher in London.
Burberry Christmas advert starring Domhnall Gleeson
The luxury brand is known for working with model Kate Moss, above
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Burberry is a favourite of Hollywood stars and the fashion elite.
Fashion favourites Alexa Chung and Olivia Palermo were also in attendance.