Skip to main content

Market Overview

Coach Reportedly Tried To Bag Burberry In Recent Months

Share:
Coach Reportedly Tried To Bag Burberry In Recent Months

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“Talks are no longer active between the companies and that is not expected to change anytime soon after Burberry saw off the interest from its larger rival,” the report highlighted.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

 

Related Articles (COH)

View Comments and Join the Discussion!

Posted-In: accessories Evercore Partners luxury accessories luxury handbagsM&A News Rumors Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com