Frasers Group PLC (LSE:FRAS) has dropped its bid for Mulberry - but with a parting shot at the fashion group over its corporate governance and financial health
In a statement, Frasers, which had several takeover offers rebuffed, said it has become “increasingly concerned over the governance of Mulberry, the apparent lack of a commercial plan against a backdrop of increasing market headwinds, and critically, the financial position in which Mulberry currently finds itself”.
Frasers, which already owns a 37% stake, made a final offer of 150p per share on 10 October.
In its statement, it said it believes “that market headwinds, and a clear lack of commercial plan, place the company [Mulberry] in a very difficult financial position”.
Frasers added it now hopes that Mulberry will engage positively and allow one of its appointees to join the Mulberry Board, a request that has been made several times.