Rumours spread fast in the world of fashion.
Megabrands Burberry and Coach intend to merge, according to a report on Betaville’s blog released this past Friday.
The speculation triggered Burberry’s shares to rise by 4.8 percent almost instantaneously, despite a lack of statements made by either company. It brings into question the intent of the allegations, and whether Burberry’s shares will decline back to normal as past firms with similar rumours have experienced.
A potential cause of the speculation is the underwhelming year M&A activity has had so far in the retail and luxury goods sectors. Similar allegations have been discussed with regards to Michael Kors and PVH Corp and proven to be false each time.
While a Burberry spokesperson declined to comment on the M&A rumours, Coach stated that it “has a long-standing policy of not commenting on rumours and speculation.”
Only time will tell if the two companies have any true intentions.
Original article from Business of Fashion: https://www.businessoffashion.com/articles/news-analysis/burberry-shares-gain-after-report-coach-is-considering-merger