Moncler: shares jump on M&A chatter
(CercleFinance.com) - Moncler shares are jumping over 10% on Thursday on speculation about a takeover of the Italian jacket maker by French luxury giant Kering.
According to Bloomberg, the companies are holding exploratory talks about a potential M&A deal.
Analysts said a marriage between these two groups would make sense.
"The recent acquisition of Tiffany by LVMH is clearly putting pressure on both Richemont and Kering," analysts at Bernstein commented today.
Given Gucci's extraordinary success, about 80% of Kering's EBIT has become dependent on the Italian brand, they pointed out.
"Moncler would be another step in trying to balance this out," Bernstein added.
Even though Moncler is a great company, this deal would not be transformative for Kering, analysts warned, and would still leave the hard luxury issues unresolved.
Bernstein has "outperform" ratings on both Moncler and Kering.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
According to Bloomberg, the companies are holding exploratory talks about a potential M&A deal.
Analysts said a marriage between these two groups would make sense.
"The recent acquisition of Tiffany by LVMH is clearly putting pressure on both Richemont and Kering," analysts at Bernstein commented today.
Given Gucci's extraordinary success, about 80% of Kering's EBIT has become dependent on the Italian brand, they pointed out.
"Moncler would be another step in trying to balance this out," Bernstein added.
Even though Moncler is a great company, this deal would not be transformative for Kering, analysts warned, and would still leave the hard luxury issues unresolved.
Bernstein has "outperform" ratings on both Moncler and Kering.
Copyright (c) 2019 CercleFinance.com. All rights reserved.