Mulberry rejects £111m takeover proposal from Frasers

(Sharecast News) - Mulberry rejected a second takeover proposal from Mike Ashley's Frasers Group on Tuesday, saying it was "untenable".

The luxury handbag maker announced on 1 October that it had rejected an £83m, or 130p a share proposal from Frasers, which already owns a 37% stake in the group. It said at the time that the proposal failed to recognise its "substantial future potential value".

On Tuesday, Mulberry said it was rejecting Frasers' sweetened £111m or 150p a share proposal, made on 11 October. This comes after major shareholder Challice said it had no intention of selling its 56.4% stake to Frasers Group despite the increased bid.

Challice is controlled by Singaporean entrepreneur Christina Ong and her husband, Ong Beng Seng and can block any bid. It called on Frasers to abandon its bid, saying it came at an "inopportune time" for the struggling brand.

Mulberry said that after careful consideration with its advisers and in light of Challice's position, "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".