Burberry shares rise amid speculation of Moncler takeover
Investing.com -- Shares of Burberry (LON:BRBY ) rose over 2% on Monday (NASDAQ:MNDY ) amid growing speculation that the British fashion giant could soon be taken over by Italian luxury brand Moncler.
The rumours of a potential acquisition have sent ripples through the fashion world, as the iconic British label, known for its classic trench coats and signature Burberry check, could become the latest high-profile brand to fall under foreign ownership.
As per a report from The Daily Mail, sources close to the matter suggest that staff at Burberry’s flagship London store have already been informed about the potential takeover.
Employees have been told not to discuss the deal with outsiders until more details are confirmed.
Additionally, Burberry has reportedly paused talks with its business affiliates who sell its merchandise as it waits for further information on Moncler's bid.
Moncler, which was founded in 1952 as a manufacturer of sleeping bags, is now best known for its luxury padded jackets popular among skiers and mountaineers.
Recently, the brand has expanded its reach, and the prospect of a Burberry acquisition has been fueled by moves such as the 10% stake in Moncler’s parent company, Double R, acquired by LVMH earlier this year.
This development has led to speculation that LVMH’s billionaire boss, Bernard Arnault, could be behind the push for Burberry.
The speculation comes as Burberry’s new CEO, Joshua Schulman, is expected to reveal a new strategy for the brand, including a potential shift towards lowering prices and focusing on its classic designs.
However, if a Moncler takeover does proceed, it could represent a significant change for the iconic British brand, further blurring the lines between homegrown heritage labels and international conglomerates.
Industry experts, including former *Vogue* editor Alexandra Shulman, have cautioned that such a move would be a major blow to British fashion, as reported by The Daily Mail.
Source: Investing.com
