Burberry share price rises 6% after rumours of takeover bid

Shares in Burberry rose by 6% yesterday after reports suggested its Italian rival Moncler may be considering a bid for the British luxury brand.

- Jack Simpson

The rise came after the trade website Miss Tweed reported that Moncler, which also owns Stone Island, was looking at a potential acquisition of Burberry, which has struggled as demand for luxury fashion goods has fallen.

The report cited several industry sources who said the head of the luxury goods conglomerate LVMH, an investor in Moncler, was keen to get a deal done with the British retailer.

LVMH, whose portfolio of high-end brands includes Louis Vuitton, Dior, Fendi and Celine, has a 15.8% stake in Double R, the investment vehicle that owns Moncler. That gives LVMH a seat on the Italian fashion brand's board.