Moncler said to consider bid for Burberry, shares rally
Burberry shares shot higher on Monday after online fashion publication Miss Tweed suggested over the weekend that Italy’s Moncler could be considering a bid for the luxury fashion brand.
Burberry Group
978.00p
17:15 02/01/25
FTSE 250
20,640.23
16:49 02/01/25
FTSE 350
4,552.87
16:50 02/01/25
FTSE All-Share
4,509.26
17:14 02/01/25
Moncler S.P.A.
€20.04
19:59 22/03/17
Personal Goods
15,606.45
16:29 02/01/25
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.