Burberry shares jumped more than 7% yesterday morning following reports that Italian competitor Moncler is mulling a bid for the luxury retailer.
The rise came after website Miss Tweed reported the rival was looking into a potential takeover of Burberry to create an outdoor clothing specialist giant.
However, Moncler told The Guardian that it did not comment on “unsubstantiated rumours”.
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It comes after city analysts warned Burberry faced a potential takeover threat in April, after its share price dropped 20% since the start of the year.
The British label went on to be booted off the FTSE 100 in August for the first time in 15 years.
Last month, the brand’s market value then plummeted to its lowest level in 15 years amid scepticism from city analysts regarding its ability to maintain its status as a “high-end luxury brand”.
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