Mulberry has turned down Frasers Group’s enhanced takeover proposal of £111m as tensions escalate between the luxury handbag retailer’s principal shareholder and the owner of Flannels.
The retailer stated that it had taken into account the stance of major shareholder Challice, which indicated last week that it had “no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking regarding the potential offer.”
In a statement released on Tuesday, Mulberry asserted: “After thorough consideration with its advisers and in light of the above, the board is unanimously of the opinion that the possible offer is untenable and that the company should concentrate its efforts on enhancing the commercial performance of the business.”
This follows Frasers’ submission of a revised cash offer earlier this month priced at 150p per share for what it does not already own, bringing the total bid to £111m, an increase from its initial offer of £83m.
Mulberry restated a previous statement issued at the end of September: “We believe that the combination of the appointment of a new CEO, our new debt facility, and the capital raising announced today will provide the group with a strong foundation for ensuring we are well-prepared for future growth.”
Frasers has until 28 October to either put forward a concrete offer for the company or declare that it does not plan to proceed with an offer.
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