The Coach/Kate Spade/Michael Kors Saga Continues...And Stocks Are Moving

The claws are out and the handbags are swinging.

Rumors of Kate Spade & Co (NYSE: KATE) buyouts, Coach Inc (NYSE: COH) acquisitions and Michael Kors Holdings Ltd (NYSE: KORS) mergers have left the luxury handbag space highly sensitive to M&A rumors.

So, when Wednesday whispers suggested a stall in recent talks between Coach and Kate Spade, the stocks went wild. Coach waned, Kate fell, and Michael Kors popped 2.4 percent as some considered it a new Coach target.

Here’s What We Know

In February, Kate Spade confirmed it was exploring strategic alternatives and actively pursuing a sale. Both Coach and Michael Kors took interest.

After a week of chatter, Michael Kors and Coach were declared finalists in the second round of bidding. Kate considered a late-March bid from Coach before expressing on its first-quarter earnings call a need for more time to consider the offer.

The climate of the handbag space and Coach’s eagerness to make a deal have some wondering if the luxury brand has shifted interest to Michael Kors.

At the time of publication, Michael Kors was trading up 1.8 percent, Kate was down 1.1 percent and Coach was down 0.2 percent.

Related Links:

Why The Street Believes Kate Spade Will Be Acquired, But Has Doubts On Angie’s List

Are Improving Trends Enough To Send Coach Bears Back Into Hibernation?