Mulberry slumps as Frasers says it has no intention to make a bid

Mulberry shares tumbled on Thursday afternoon after Mike Ashley’s Frasers Group said it does not intend to make an offer for the luxury handbag maker.

Frasers upped its stake in Mulberry last month to 37% and said it was considering a possible takeover. Frasers bought just over 4.3 million shares from Iceland’s Kaupthing at 150p each.

Under the Takeover Code, when a person or group acquires a 30% stake in a company, they must make a cash offer for the remaining shares.

Frasers had until Thursday to either make an offer or walk away.

At 1600 GMT, Mulberry shares were down 11% at 214p.