(News Bulletin 247) – The British group is making progress on the London Stock Exchange, driven by press information reporting potential expressions of interest from the Italian Moncler with a view to a takeover.

Burberry climbs on the London Stock Exchange on Monday following press information suggesting an interest from Italian competitor Moncler to buy the British luxury group.

According to fashion industry media Miss Tweed, “Moncler is considering making an offer to buy Burberry to create an outerwear giant.”

Contacted by News Bulletin 247, Moncler said it would not comment on “unfounded rumors”, just like Burberry which also said it would not comment on “speculation”.

In London, Burberry shares, whose market valuation amounted to nearly 3 billion pounds (3.57 billion euros) at the last close, climbed 4.6% while Moncler shares lost 1. 2% Milan, around 2:40 p.m.

“An improbable scenario”

Italian broker Intermonte said a possible deal between the two luxury groups was an “unlikely scenario” because Moncler would consider relaunching a company as large as Burberry risky.

“Given the work underway for Moncler’s acquisition of Stone Island from 2020, which has so far disappointed the market somewhat, the timing could be surprising,” UBS analysts said.

Affected by the slowdown in demand in the luxury industry, Burberry has been in difficulty for several months. Its stock has lost 40.2% since the start of the year.

The British luxury group, which scrapped its dividend and issued a profit warning in July, will publish its first-half results on November 14.

In September, the French luxury giant LVMH initiated a merger with Moncler by acquiring 10% of the investment vehicle controlled by the holding company of Moncler manager Remo Ruffini, through which the latter holds a direct stake in Moncler.

(With Reuters)