Mulberry shares rose as Frasers Group reviewed a possible takeover bid for Investing.com

Investing.con — Stocks of Mulberry Group (LON:) rose 12% following a revised potential takeover offer from Frasers Group Plc.

Shares in the luxury fashion company jumped after Frasers, which already owns a majority stake in Mulberry, announced a potential cash offer for its remaining shares, valuing them at 150 pence each.

The revised offer comes after an earlier approach, and if successful, could give the Frasers full control of the company.

However, a potential deal has hit a roadblock as Challice Limited, which owns the majority of Mulberry’s shares, has publicly rejected the offer.

Challice, which controls 56.4% of Mulberry, said it “has no interest in selling its Mulberry Shares to Frasers or providing Frasers with any irrevocable or alternative transaction”.

Challice’s resistance introduced uncertainty into the takeover talks. Despite Frasers’ increased bid, the outcome remains unclear as Mulberry’s board continues to evaluate its options with the help of outside advisers.

“The Board emphasizes that there can be no assurance that an offer will be made to the Company or on the terms on which any such offer may be made,” Mulberry said in an exchange filing.

Frasers, led by retailer Mike Ashley, has until October 28 to announce a firm offer in line with UK takeover rules or walk away.

The deadline may be extended with the approval of the Admissions Panel.