Burberry spurns multiple takeover approaches from Coach

Burberry has batted away several take-over approaches from US group Coach in recent months, according to well-placed sources.

The FT has reported that a merger of the UK luxury house with Coach, which also owns footwear group Stuart Weitzman, would have created a group with a market value of in excess of $20bn.

Sources told the publication that talks between the two parties had now ceased and were unlikely to be resurrected soon. Rumours that Coach was attempting to make a play for Burberry emerged this autumn after its shares jumped 4.8%.

Coach's approaches were understood to have been informal and would have comprised of a cash and stock offer if they were carried forward but it is not clear what sort of value it would have placed on the business.

Marco Gobbetti (l) and Christopher Bailey

Industry watchers believe that Coach's offers came a little too late and may have been more successful had they come earlier in the year when Burberry's shares were hit following the global luxury slowdown and the uncertainty over the brand's leadership.

Chief executive and chief creative officer Christopher Bailey had been placed under pressure in the first half of the year to split his role, which contravenes corporate governance guidelines. He relented and in July it was revealed that he would be standing down as CEO and assuming the new role or president and chief creative officer. Marco Gobbetti was appointed as CEO from LVMH’s luxury brand Céline and will join Burberry next year.