April 30 (Bloomberg) -- Burberry Group Plc, the British luxury label known for its trademark plaid, rose to the highest in more than three months in London trading on renewed speculation that a competitor may make an offer.

Burberry climbed 21.25 pence, or 4.6 percent, to 483.75 pence, closing at its highest since Jan. 14. The Times newspaper said last month Coach Inc., the largest U.S. luxury-goods maker, was a ``possible predator.''

``The bid rumors are still going around,'' MF Global analyst John Guy said today by phone. Burberry ``could be of interest to any one of several players.''

Guy said the company is a possible target for ``hard- luxury'' players looking to expand into the leather-goods market such as Tiffany & Co., Cie. Financiere Richemont SA and Bulgari SpA. A spokeswoman for Burberry declined to comment. She asked not to be named.

Luxury stocks have dropped worldwide this year amid signs that U.S. consumer spending will have an earlier, steeper decline than analysts had anticipated. Burberry, which features Sting's daughter Coco in its current advertising campaign, tumbled the most ever in January after saying profit may miss estimates.

Burberry and Coach ``have compatible entrepreneurial cultures,'' Merrill Lynch & Co. analyst Antoine Colonna said in a note in August, when he identified Burberry as a potential target for an acquisition by Coach or Gucci Group owner PPR SA.

To contact the reporter on this story: Loveday Morris in London at lmorris7@bloomberg.net

Last Updated: April 30, 2008 11:59 EDT