The rumor mill went haywire Friday after financial blog Betaville suggested Coach Inc. and Burberry had discussed a potential merger.
Shares of the luxury British brand shot up more than 2 percent Friday morning, a few days after falling to their lowest level in a year on the back of disappointing half-year results. Coach investors didn’t have quite the same response to the news: shares of the New York-based design house dipped in early trading.
According to Betaville, two people claiming to be close to the situation said Coach has been working with financial advisors from Evercore for several weeks. One of the sources said senior executives from both brands had met more than once over the summer for informal discussions about a deal.
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