U.K.-based luxury goods retailer Burberry (LON: BRBY) (OTC: BBRYF) has rejected multiple takeover approaches from U.S. rival Coach
Inc (NYSE: COH) in recent months, according to a
report on Financial Times.
The Rumored Interest
The report said the deal
would have created a company with a market value in excess of above $20 billion, bringing together Coach’s leather goods, handbags
and shoemaker Stuart Weitzman with Burberry’s trademark luxury outerwear and global retail footprint.
FT said Coach’s
offers, which peaked sometime after the summer, were informal and comprised of a cash-and-stock acquisition of Burberry.
“Talks are no longer active between the companies and that is not expected to change anytime soon after Burberry saw off the
interest from its larger rival,” the report highlighted.
Could It Have Succeeded Under Different Circumstances?
The report noted that Coach might have been more successful if had approached the British company earlier this year when
Burberry shares were under pressure from a slowdown in luxury demand from Asia, questions over its leadership and fall in the pound
over Brexit concerns.
FT added that Coach was
working with three investment banks, including Evercore Partners, on the deal. Burberry’s advisers included the London-based
advisory firm Robey Warshaw.
Shares of Coach closed Friday’s trading at $36.23.
Image Credit: By Shoshanah [CC BY 2.0], via Wikimedia
Commons
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