Burberry’s stock surged over 7% yesterday morning in response to speculation that Italian rival Moncler is considering a bid for the luxury fashion house.
The uptick in shares followed a report by the website Miss Tweed, which indicated that Moncler was exploring a potential acquisition of Burberry to establish a leading outdoor apparel company.
Nonetheless, Moncler responded to The Guardian that it does not comment on “unsubstantiated rumours.”
This development follows warnings from analysts in April that Burberry might be vulnerable to a takeover, as the company’s share price had fallen 20% since the beginning of the year.
Earlier in August, the British brand was removed from the FTSE 100 for the first time in 15 years.
Last month, Burberry’s market value dropped to its lowest point in 15 years, amid doubts from analysts about its capacity to uphold its image as a “high-end luxury brand.”
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