British handbag maker Mulberry Group (AIM:MUL) has shot down Sports Direct-owner Frasers Group PLC's (LSE:FRAS) offer to acquire the company’s outstanding shares at a premium valuation.
Frasers, which currently owns more than a third of Mulberry’s shares, has made numerous attempts to engage with Mulberry on a 150p-per-share offer and has expressed frustration over the board's reticence.
Somerset-based Mulberry finally addressed the advances today with a statement that called the offer “untenable”.
Frasers first launched the bid in retaliation to the luxury leather goods company's majority shareholder Challice’s agreement to enter into a £10 million equity fundraising round.
In response to the board's reluctance to engage, Frasers approached Challice directly about a possible offer, which Mulberry said it “is not commenting upon any such direct engagement”.
Mulberry reiterated a previous statement made following Frasers’ initial approach: "We believe that the combination of the appointment of a new CEO, our new debt facility and the capital raising announced today will put the group on a firm footing to ensure we are well set up for future growth."
Frasers has until 28 October to table a formal offer for Mulberry.