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By David Osborn


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As published in international trade media, the PPR have been mentioned as predators but PPR denied it is interested through an official statement last Friday: "Burberry is a very beautiful brand, but it does not match the selection criteria for our luxurious portfolio..." made clear PPR spokeswoman Charlotte Judet. Burberry's shares closed down at ?11.08 on Friday.

Speculations rocketed after head of PPR; Francois-Henri Pinault admitted the group is looking to buy another brand, perhaps early next year. Some market analysts have speculated that Burberry isn't an ideal choice for the team as another fashion brand would "cannibalize" customers from the Gucci group's existing brands which appeal to exactly the same consumers. On the other hand, UK-based analysts argue that in the current market PPR wouldn't necessarily be able to afford Burberry anyway. In this sense, analysts at JPMorgan pointed out how "Burberry is simply way too big for PPR - it would need to sell all of its retail assets and its CFAO minority [African distribution arm] to come anywhere close to Burberry's current enterprise value."

John Guy, analyst at Royal Bank of Scotland, said to Financial Times that Burberry is one of the few luxurious goods groups free from family control or a blocking stake. "It is the only 100 per cent free-float listed company out there, with real size and scale, and with the opportunity still to grow further," he said. "From a luxury goods perspective, if someone wants the growth from a fast-moving brand, Burberry is in that camp," conclude Kate Calvert, analyst at Seymour Pierce, in an article for Financial Times.




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