A week after Jimmy Choo PLC (LON:CHOO) announced its intention of selling itself, reports suggest Coach Inc (NYSE:COH) might be the possible company to buy it. The stock has already increased 9.2 percent since the company’s announcement of takeover offer. The market cap on Friday’s close suggested 729.64 million pounds sterling as the stock is trading close to the one-year high price.
Coach, an American handbag firm, might be the possible suitor for Jimmy Choo, according to the telegraph.co.uk. The United States-based firm is keen to erase the memory of failed attempt to buy Burberry last year. The company is reportedly keen to buy the London-based firm to expand its presence through a swoop.
Interestingly, the major shareholder of Jimmy Choo, JAB Holdings, which has a 68 stake, is also interested to divest its stake in the company. That is principally because it has been engaged in acquisition spree. Its latest acquisition is Panera Bread Co (NASDAQ:PNRA).
The London-based firm is not likely to attract any other big names from the domestic circuit since companies like LVMH o Kering are streamlining their operations instead of expanding them. Therefore, the American firm stands a better chance of winning the bid for the London firm.
A lot depends on how Coach will plan about its funding. The company is also scheduled to announce its quarterly results on May. That could indicate that it might announce both the events together. Street analysts are looking for an EPS of 44 cents and revenue of $1.02 billion. Incidentally, the company either met or exceeded the earnings estimates in the last four quarters. Therefore, investors expect another positive earnings surprise.
On Friday, Jimmy Choo stock closed with a gain of 0.38 percent.