LONDON (Reuters) - Burberry (BRBY.L) has been told by HSBC that a stake of nearly 5 percent built up in the British luxury brand was the result of a series of trades by client funds rather than done on behalf of a single investor, dampening hopes of a potential takeover bid.
Three sources familiar with the matter said there was no mystery investor trying to build a large stake in the company, and that the holding came from different funds on which the bank advises.
Stakebuilding by a single investor could have been the prelude to a bid for the British firm, whose market capitalization has fallen in the past year amid concerns about falling demand from its key markets in Asia, particularly China and Hong Kong.
Shares in the company fell 6 percent by 1205 GMT, reversing the previous day’s rise to a five-month high.
HSBC, which is listed as the custodian of the stake, had executed the trades for a number of private parties that briefly took its holdings above the 5 percent threshold level.
Reporting by Li-mei Hoang; Anjuli Davies and Freya Berry; Editing by Keith Weir