Friday’s news of a raised possible offer by Frasers Group for Mulberry was followed at the weekend by Mulberry’s majority owner Challice saying it wasn’t interested in selling. End of story it clearly hoped.

Frasers hasn’t responded to that so far. But on Monday, the Mulberry board has noted the developments and said it’s “working with advisers to consider the company’s position and will provide a further announcement in due course”.

Despite Frasers not having made a firm offer, Mulberry is considered to be in an offer period under the takeover rules of the London Stock Exchange.

Under those same rules, Frasers has until no later than 5pm on 28 October to either announce a firm intention to make an offer for Mulberry or walk away, although the deadline could be extended.

Frasers Group owns around 37% of Mulberry, but that stake makes it only the second-largest shareholder in the business. Challice, controlled by the Singapore-based billionaire Ong family, owns more than half — actually 56.1% — of the shares so is in the driving seat. And Challice, which gained control in 2003, seems determined for the situation to stay that way, despite the value of its investment having plummeted since the share price reached a high in 2012. 

Mulberry shares reached 2,390p each (£23.90) back in May 2012 but opened on Monday at only 136p (£1.36) giving the firm a value of almost £96 million.

Admittedly, that Monday price is 21% higher than Friday’s closing price, which is no surprise given the late Friday news that Frasers is potentially offering 150p a share. That share price is also up 9% in a week on the back of the Frasers interest and almost 24% over six months, driven both by Mulberry changing its CEO and the takeover interest.

Frasers bought its first stake in the business in 2020, snapping up a 12.5% holding that it has increased steadily as it continued with its wider elevation strategy. Frasers is a wholesale partner for Mulberry and analysts have said the luxury bags business could fit well into the Frasers portfolio.