17 hours ago | By Cassandra Gagnon
The fashion rumour mill has awoken again with news that the luxury fashion houses Burberry and Coach are in a takeover battle. The latest reports come courtesy of the Financial Times, who reported on Sunday, that UK luxury fashion house Burberry has rejected multiple takeover offers from US accessories giant Coach.
The cash and stock bids by Coach, that could have created a combined $20bn company, were informal, the report said. However, it was unclear at what premium the offers were made or if Burberry ever engaged in serious talks with Coach.
In October, Reuters quoted sources familiar with the matter as saying that the companies were not in active talks, after a report that suggested the two fashion companies were considering a tie-up.
Under the creative direction of Stuart Vevers, the Coach brand has gone from strength to strength, engaging the next generation of shoppers through innovative campaign images and savvy collaborations with key influencers such as Chloë Grace Moretz in the spring 2016 campaign. Better still, in the quarter ended October 1, Coach revealed that net sales rose 1% to $1.04bn, just missing the $1.07bn analysts expected.
Neither of the companies were immediately available for comment.
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