Mulberry formally rebuffs Frasers’ 150p-per-share bid

The board of luxury goods maker Mulberry has formally rejected a takeover approach by Frasers Group, describing the increased offer as “untenable”.

The announcement was expected given Mulberry’s majority shareholder, Challice, had reacted to the 150p-per-share proposal by saying it “has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking”.

Retail giant Frasers, which has built a 37% stake in the business, was willing to pay £72m for the shares that it doesn’t own.

In a statement to the stock market, Mulberry said: “After careful consideration with its advisers and in light of the above, the Board is unanimously of the view that the possible offer is untenable and that the company should focus its attention on driving the commercial performance of the business.”

Frasers is required to confirm if it intends to make an offer or not by October 28.

Frasers has expressed its frustration that Mulberry raised £10m at 100p-per-share earlier this month, but blocked the 130p-per-share proposal days later. It then returned with its 150p-per-share terms, which has now been formally rebuffed.

Mulberry today also reiterated a previous statement which said: “We believe that the combination of the appointment of a new CEO, our new debt facility and the capital raising announced…will put the group on a firm footing to ensure we are well set up for future growth.”