Burberry Shares Rise on Moncler Acquisition Speculation

Shares of Burberry (LON:BRBY) rose over 2% on Monday amid growing speculation about a potential takeover by Italian luxury brand Moncler.

The rumors have created a stir in the fashion industry, with Burberry, renowned for its classic trench coats and signature check, potentially joining the list of high-profile brands under foreign ownership.

According to a report from The Daily Mail, sources indicate that employees at Burberry’s flagship London store have already been informed about the potential acquisition. Staff members have been instructed not to discuss the deal externally until more details are confirmed.

Additionally, Burberry has halted discussions with its business affiliates regarding merchandise sales while awaiting further information on Moncler's bid.

Moncler, founded in 1952 and initially a sleeping bag manufacturer, is now celebrated for its luxury padded jackets popular with skiers and mountaineers. The brand has recently expanded its influence, which heightened speculation about its interest in Burberry, especially following LVMH's acquisition of a 10% stake in Moncler’s parent company, Double R, earlier this year.

This has led to conjecture that LVMH’s billionaire CEO, Bernard Arnault, could be driving the push for Burberry’s acquisition.

The speculation coincides with Burberry’s new CEO, Joshua Schulman, who is anticipated to unveil a new strategy for the brand, potentially focusing on lowering prices and emphasizing classic designs.

Nonetheless, should Moncler proceed with the takeover, it would signify a significant shift for the iconic British label, further merging the lines between homegrown heritage brands and international conglomerates.

Industry experts, such as former Vogue editor Alexandra Shulman, have warned that such a takeover could be detrimental to British fashion, according to The Daily Mail.