Ted Baker shares rallied on Monday following weekend reports that Juicy Couture owner Authentic Brands is the British fashion chain’s preferred bidder.
The firm put itself up for sale in April and last week revealed it had picked a preferred suitor, which is now widely understood to be New York-headquartered Authentic Brands with a takeover bid rumoured to be worth £300million.
Ted Baker shares were up 3 per cent to 139.8p at lunchtime, bringing year-to-date gains for the previously beaten-down stock to roughly 34.4 per cent.
Follower of fashion: Ted Baker confirmed last week it was in discussions with ‘a preferred counter-party’
However, The Mail on Sunday and This is Money reported yesterday that the US suitor may still pull its bid for the fashion chain.
Authentic Brands – whose portfolio of labels includes David Beckham, Juicy Couture and Nautica – has been in talks to buy the business for more than £1.50 a share.
Ted Baker has said the talks are ‘likely to take several weeks’, but the American group is understood to be considering deals elsewhere.
It is not clear whether any other serious bidders are ready to step up – should Authentic’s interest evaporate.
The New York-based firm has looked at buying other UK businesses but its main focus remains the US market.
Last week, Ted Baker reported reduced annual losses. It said the end of Covid restrictions has lifted demand for office and leisure wear.
But the fashion market is likely to remain under pressure this year as rising inflation curbs spending and cost pressures squeeze profits at retailers.
Ted Baker’s share price fell 2 per cent last week. Other retail stocks rose after Chancellor Rishi Sunak revealed plans for a stimulus package.
Authentic Brands declined to comment.
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