Mulberry Majority Shareholder Rejects Frasers Bid

Mulberry Group's shares surged 20% after its majority shareholder, Challice Ltd, announced it would not sell its 56.4% stake to Frasers Group, which had made an increased offer of 150p per share. Challice, owned by Christina Ong and her husband, expressed that selling at this time would be inappropriate and regretted the distraction posed by the takeover bid. Frasers Group, which holds a nearly 37% stake in Mulberry, had initially offered 130p per share, which was rejected for undervaluing the company. The Ong family reaffirmed their support for Mulberry's management and emphasized the brand's long-term potential. Under UK takeover rules, Frasers has until October 28 to make a firm offer or withdraw its bid. The luxury brand has faced significant valuation declines, dropping from a peak market value of £1.5 billion in 2012 to approximately £79 million recently.