Moncler said to consider bid for Burberry, shares rally

According to Miss Tweed, several industry sources said that Bernard Arnault, chief executive and controlling shareholder of LVMH - which recently invested in Moncler - is "keen" to see such a deal happen.

At 0855 GMT, the shares were up 4.6% at 849p.

Commenting on the article, Oddo said it "looks possible theoretically" as Burberry is definitely struggling, having failed to make a dent in the key category of women’s handbags.

It also noted that Burberry’s financial performance has weakened and said Moncler management has the skills/resources to turn it around and could also be supported by LVMH.

Oddo said that assuming a 40% premium, which would require the backing of the Burberry board, it thinks it could be a stock/cash deal.

It said a deal would be significantly dilutive on year one so it is looking at this "with caution". Oddo said the Burberry transformation could take a long time, would induce costs and would face clear macro headwinds near term.