Mystery stakeholder prompts takeover talk at Burberry

A SECRETIVE investor has been building up a 5% stake in fashion giant, and the business has reportedly hired advisors to investigate a possible takeover attempt.

The Financial Times said that rivals LMVH, formed by the 1987 merger of fashion house Louis Vuitton with Moët Hennessy or US group Coach could be behind the attempt.

Sources said Burberry had unsuccessfully petitioned HSBC, the custodians listed for the investor, to divulge its client.

Under City regulations, a shareholding of 3% or more must be declared, though investment managers have more room to manoeuvre, and only have to make shareholdings public at 5%.

Robey Warshaw and Morgan Stanley have been put on the case.

The fashion giant saw its market value drop by a quarter as news of a Chinese slowdown came through.

Now however Burberry’s share price has surged 5% on the news of a potential takeover.

The fashion house is investing £50m in a South Bank manufacturing site.

More than 1,000 people are expected to work at the manufacturing and weaving facility at Temple Works after it is completed in 2019.