Frasers abandons pursuit of Mulberry
By Michele Maatouk
Date: Wednesday 23 Oct 2024
(Sharecast News) - Mike Ashley's Frasers Group said on Wednesday that it was abandoning its pursuit of luxury handbag maker Mulberry.
The news came a day after Mulberry announced that it had rejected a second takeover proposal of £111m, or 150p a share, saying it was "untenable".
Mulberry's rejection of the offer - up from a previous proposal of 130p a share - came after major shareholder Challice said it had no intention of selling its 54% stake to Frasers.
Frasers said it had become increasingly concerned over the governance of Mulberry, the apparent lack of commercial plan against a backdrop of increasing market headwinds and the financial position it finds itself in.
It said: "Whilst the response announcement is a disappointing outcome, Frasers remains a long-term supporter of the well-loved British brand, Mulberry.
"Frasers continues to believe that market headwinds, and a clear lack of commercial plan, place the company in a very difficult financial position. Frasers welcomes the presentation of a credible plan in the near term."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN