Investing.con -- Shares of Mulberry Group (LON:MUL) surged by 12% following a revised possible takeover offer from Frasers Group Plc.
The luxury fashion company’s stock jumped after Frasers, which already holds a substantial stake in Mulberry, announced a potential cash offer for the remaining shares it does not own, pricing them at 150 pence per share.
The revised offer comes after an earlier approach, and if successful, would give Frasers full control over the company.
However, the potential deal has hit a roadblock with Challice Limited, Mulberry's majority shareholder, publicly rejecting the offer.
Challice, which controls 56.4% of Mulberry, said it "has no interest in either selling its Mulberry Shares to Frasers or providing Frasers with any irrevocable or other undertaking".
Challice's resistance has introduced uncertainty into the takeover talks. Despite Frasers' increased bid, the outcome remains unclear as Mulberry’s board continues to assess its options with the help of external advisers.
“The Board highlights that there can be no certainty that an offer will be made for the Company nor as to the terms on which any such offer might be made,” Mulberry said in an exchange filing.
Frasers, led by retail mogul Mike Ashley, has until October 28, to either announce a firm offer in accordance with UK takeover regulations or walk away.
The deadline could potentially be extended with the consent of the Takeover Panel.