Burberry Stock Held in Check as Takeover Rumors Dispelled

London-based luxury clothier Burberry Group plc once again found itself the subject of takeover rumors early in the week, seeing its stock spike on Monday, March 7. Investors bid up the share price in response to reports that the company, famous for its trench coats, had hired investment banks out of concern that a potential acquirer was building a stake in the brand. According to the Financial Times, the investment banks included Morgan Stanley and Robey Warshaw LLP. That concern was triggered due to the disclosure in mid-February by HSBC Holdings plc, the London-based financial conglomerate, that it held a 5.4% stake in a brand steeped in British heritage. A source, however, confirmed Wednesday reports that the bank built the stake for multiple clients, not a single entity, dampening the takeover speculation.