Moncler denies bid for Burberry, shares drop

Investing.com -- Burberry (LON:BRBY ) shares fell on Tuesday, after Reuters reported that Italian luxury brand Moncler is not currently in talks to acquire the British fashion house.

At 6:35 am (1135 GMT), Burberry was trading 7.3% lower at £720.95.

Speculation had circulated about a potential takeover, following a report by The Daily Mail suggesting that Moncler was preparing to make a bid for Burberry. This news had initially sent Burberry’s shares up over 2%.

However, four sources close to the matter, as reported by Reuters, have since denied any such discussions between the two companies. 

A potential acquisition by Moncler could have marked a major shift for Burberry, a brand steeped in British heritage and known for its iconic trench coats and signature check pattern.

A new strategy for Burberry is set to be announced by Burberry's new CEO, Joshua Schulman, this could include lower prices and increase the focus on classic designs.

Source: Investing.com