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.
