Mulberry Shares Surge After Majority Shareholder Rejects Frasers Group’s Takeover Bid

2 min read | October 14, 2024 07:13 AM EDT | By Team Kalkine Media

Mulberry Shares Surge After Majority Shareholder Rejects Frasers Group’s Takeover Bid — Image source: Shutterstock

Shareholder Rejection

Frasers Group’s latest offer of 150p per share came over the weekend, following an initial bid of 130p last month that was rejected by Mulberry. Challice Ltd, the largest shareholder, swiftly responded, stating it had no intention of selling its shares or providing Frasers with any form of commitment. The rejection puts the spotlight on Mulberry’s strategic direction as it grapples with Frasers' interest.

Frasers’ Reservations

Frasers, known for its ownership of multiple fashion and sports brands, expressed doubts about Mulberry’s future prospects, questioning whether the recent £10 million capital raise would be enough to sustain the company in the short to medium term. Frasers had participated in the fundraising to maintain its stake but remains critical of Mulberry’s current business strategy, stating that there appears to be no clear turnaround plan.

Board’s Response and Market Reaction

In response to the bid and the rejection from Challice, Mulberry’s board announced it would work with advisers to evaluate the company's position moving forward. The board is also facing a “put-up-or-shut-up” deadline of 28 October for Frasers to submit a final offer. Following the news, Mulberry’s shares surged to 126p, reflecting a 12% increase by mid-morning, while Frasers saw a slight uptick in its share price as well.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.