LONDON — Shares in luxury fashion brand Burberry are climbing on Monday morning after a report over the weekend said that US group Coach tried to buy the company.
The Financial Times reported on Sunday that Burberry rejected multiple takeover offers from Coach in recent months. A deal would have created a luxury goods giant worth over $20 billion (£15.7 billion). Coach is known for its handbags while Burberry is best known for its iconic check pattern and trench coats.
Both Burberry and Coach declined to comment to the FT and Burberry has not released a statement to the market on Monday morning. The FT says talks are no longer active.
Still, Burberry shares have opened over 2% higher in London on Monday:
While Burberry may not be talking to Coach anymore, the approach means Burberry is, in City parlance, “in play.” The logic runs that one approach could lead to others from different parties whose interest is piqued by the fact that if they do not move now, a rival could gobble up Burberry.