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Takeover speculation swirls through luxury world


Takeover speculation swirls through luxury world


Shares in British luxury goods group Burberry hit a new high on Wednesday on market rumours it could be a takeover target by PPR, the French owner of Gucci and Puma.

The 154 year-old maker of raincoats and handbags is one of the few luxury firms that is not family-controlled which would make a bid easier.

Having been up 6.5 percent, Burberry’s shares ended the day 2.3 percent higher.

Such rumours have been circulating for months as sales at top-end brands recover, driven by strong demand from Asia.

The Burberry takeover speculation intensified after French luxury group LVMH bought a 17 percent stake in its smaller rival Hermes and said it wants to purchase more.

And the group representing Hermes family shareholders has written to the chief executive of LVMH Bernard Arnault asking him to explain the thinking behind that. LVMH said it will not respond.

Hermes meanwhile is pushing ahead with moves to form a holding company to block any takeover.

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