Burberry Gains After Report Coach Is Considering Merger
- Shares gain as much as 8.1% in London on Betaville report
- Union of two companies would be ‘merger of problems’: Analyst
A pedestrian passes a giant poster for Burberry, posted on the outside of their store on New Bond Street in London, U.K. on Wednesday, Feb. 29, 2012. Bank of England Deputy Governor Charles Bean yesterday cautioned lawmakers against putting too much weight on positive signs in the economy.
Photographer: Simon Dawson/BloombergBurberry Group Plc shares rose the most in almost eight months after the Betaville financial blog said Coach Inc. is considering merging with the British trench coat maker.
The U.S. maker of purses and accessories has been working with financial advisers at Evercore for several weeks on a possible deal, the website said, citing two people familiar with the situation it didn’t name. Burberry shares traded 3 percent higher at 1,494 pence at 1:59 p.m. in London after rising as much as 8.1 percent, the biggest intraday gain since Feb. 26. Coach traded at the equivalent of $36.21 in Frankfurt, up about 1 percent from Thursday’s close in New York.