Shares of Coach (NYSE:COH) jumped as much as 5% Wednesday morning on buyout buzz, but the luxury leather goods maker declined to comment on “speculation or rumors.”
Continue Reading Below
Earlier on Wednesday traders were chattering about a report from mergermarket that said the New York-based company is rumored to be exploring a sale.
Citing industry bankers, mergermarket reported that logical strategic buyers include French luxury goods makers LVMH and PPR as well as department store Macy's (NYSE:M).
Private-equity firms may also express interest in Coach, though they would likely have to team up to take over a company of this size, the report said. Coach's market cap climbed above $13.5 billion on Wednesday.
“We do not comment on speculation or rumors, particularly unsubstantiated ones,” a Coach spokesperson said.
Coach also unveiled a new hire on Wednesday, tapping former Nike (NYSE:NKE) global creative director Zach Augustine to oversee a renovation of its stores.
Despite the denial, shares of Coach still hit an intraday high of $49.00 on Wednesday and were recently trading up 3.47% to $48.11. The rally trims Coach's 2013 slump to 13%.
The buyout buzz comes as the M&A world has gained momentum in recent weeks, with the announcements of high-profile buyouts of PC maker Dell (NASDAQ:DELL) and food giant H.J. Heinz (NYSE:HNZ).
Earlier in February Coach announced that longtime CEO Lew Frankfort will step down in January, handing the keys to the $13 billion company to Victor Luis.
Coach’s shares have plummeted about 40% amid concerns about future growth prospects since hitting nearly $80 in late March 2012
Late last month the maker of luxury handbags and other items disclosed a weaker-than-expected 1.5% rise in fiscal second-quarter earnings as North American same-store sales slumped 2%.