Is Burberry a Takeover Target?

Burberry shares have dropped by 25 percent over the last 12 months and the company has been struggling with slow revenue growth.
Is Burberry a Takeover Target?
Burberry's flagship store in Shanghai, China, on April 25, 2014. Kevin Lee/Getty Images
Emel Akan
Updated:

A mystery investor built up a stake of more than 5 percent in Burberry, leading to rampant takeover speculations. Burberry’s shares jumped 6.6 percent in London on March 8 after a Financial Times story said the board wants to ward off a potential takeover. However, the shares tanked the next day after the takeover rumors were quashed. 

The investor’s position was first revealed publicly on Feb. 15. HSBC bank, acting as the custodian for the investor, notified Burberry about an investment larger than 5 percent.

Burberry asked HSBC to disclose the name of the investor, but the bank declined to reveal the information.

In response, the company hired boutique advisory firm Robey Warshaw and investment bank Morgan Stanley to investigate the potential bidder and defend itself against a takeover.

“It is very rare for an investor to seek such secrecy, especially if the buyer is an institution or someone interested in investing with Burberry over a long period,” said the Financial Times report.

(Google Finance)
Google Finance
Emel Akan
Emel Akan
Reporter
Emel Akan is a senior White House correspondent for The Epoch Times, where she covers the policies of the Trump administration. Previously, she reported on the Biden administration and the first term of President Trump. Before her journalism career, she worked in investment banking at JPMorgan. She holds an MBA from Georgetown University.
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