Mulberry Group PLC on Tuesday rejected the latest attempt by Frasers Group PLC to buy the firm, calling it ‘untenable’.

‘The board is unanimously of the view that the possible offer is untenable and that the company should focus its attention on driving the commercial performance of the business,’ Mulberry said in a statement.

Mulberry, the Somerset, England-based handbag maker, said it had also considered the ‘clear position’ of its largest shareholder Challice Ltd, that it will not support the offer. Challice has a 56.4% stake in Mulberry.

Sports Direct owner Frasers, which itself has a stake in the AIM listing, had earlier this month offered 150 pence per Mulberry share it does not already own. The bid implied a Mulberry valuation of £111 million. It put a value of £72 million on the chunk of Mulberry that Frasers does not already own. It was chunkier than a 130p per share bid tabled previously.

Mulberry did acknowledge that Frasers, through its participation in the company’s recent fundraising, has shown itself to be ‘supportive of maintaining the value of the Mulberry brand’.

‘The board appreciates this and looks forward to further interactions with Frasers in the future,’ Mulberry added.

Under the equity raise, Frasers subscribed for 4.0 million shares, edging its stake in Mulberry up to 37.3% from 36.9%.

Mulberry said it believes that the combination of the appointment of a new CEO, a new debt facility and the capital raise will put the group on a ‘firm footing to ensure we are well set up for future growth.’

Frasers has until next Monday to make a formal bid for Mulberry.

Shares in Mulberry were untraded at 129.60 pence each in London on Tuesday morning. Frasers was 1.4% lower at 799.00p.

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