PARIS — French retail-to-luxury group PPR said it is not interested in purchasing British luxury brand Burberry, quashing speculation that had goosed Burberry shares this week.
“Burberry is a very beautiful brand, but it does not match the selection criteria for our luxury portfolio,” PPR spokeswoman Charlotte Judet said.
PPR this week moved one step closer to its stated goal of selling its retail assets in order to fund expansion in the lifestyle segment, which should eventually dwarf its luxury division Gucci Group. The group announced on Thursday it had entered into exclusive negotiations with South Africa’s Steinhoff International Holding Ltd. for the sale of its furniture chain Conforama for 1.2 billion euros, or $1.58 billion at current exchange rates, in cash and the payment of its debt.
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Talk of the impending sales has fueled speculation PPR was interested in using some of the proceeds to snap up a new brand. Burberry and Californian outdoor sports lifestyle brand Quiksilver have been cited as key targets.
Judet declined to comment on the rumors concerning Quiksilver. However, a source close to the company dismissed the speculation as unfounded.
PPR chairman and chief executive officer François-Henri Pinault told French daily Le Figaro in an interview that the group could make an acquisition next year.
A Burberry spokesperson declined to comment on speculation about a possible takeover. Sources close to the company, however, dismissed the latest round of takeover rumors.
On Wednesday, Burberry’s shares rose 2.3 percent to close at 11.59 pounds, or $18.31, as rumors swept the London market that the company could be the target of a 15 pounds-per-share, or $23.70, takeover bid by suitors including PPR or a Chinese investor.
Those same rumors had made the rounds earlier this year with analysts roundly dismissing them because of Burberry’s high stock price and the maturity of the company.
Burberry shares were down 2.3 percent in afternoon trading on Friday.