Kering mulls Moncler takeover | Calamatta Cuschieri

Maltese market closed in red on Tuesday, with MSE total index ending the session 0.620% lower to 9,483.926 points. There wasn’t any good performer among equity market. Biggest fall, of 7.80% was seen from Malta Properties Company plc with closing price of 0.65. Followed by International Hotel Investments plc with 2.47% drop to 0.79 and Plaza Centres plc, which slid 0.98% to 1.01. Less than 1% fall was also seen from Bank of Valletta plc, GO plc and MIDI plc.

Investors were loath to keep pushing stocks on the Continent higher, despite the boost to investor sentiment from positive headlines on US-China trade and 'merger talk' in the luxury goods sector. By the end of tradin, the Stoxx 600 had dipped 0.13% to 402.66, as Germany's Dax fell 0.65% to 13,054.80. France's CAC 40 edged up 0.03% to 5,801.55. London's FTSE 100 was down by 0.70% at 7,137.85.

U.S. stocks recovered from a morning slide. The Dow Jones Industrial Average closed up 0.1%, at 27,677.79 after trading in the red most of the day. The S&P 500 was up 0.15%, at 3,117.43 and the Nasdaq 100 closed 0.05% higher, to 8,570.70.

Kering, the parent company of Gucci and Balenciaga, has reportedly held talks with Moncler about a possible acquisition deal.

The luxury giant behind Gucci and Balenciaga held talks to buy Moncler in a potential 10.9 billion euro ($12 billion) deal, according to Bloomberg.

Moncler is listed on the Milan stock exchange and stock soared about 11% on the news, raising its market capitalization to around $11.1 billion ($12.3 billion). Its shares have now jumped about 44% in the past year.

Neither Kering nor Moncler have commented on the matter.

Kering will need to win over Moncler's chairman and CEO, Remo Ruffini, for a deal to be struck. Ruffini is the group's biggest shareholder with a stake of about 23%.

News of the deal talks comes shortly after LVMH — the owner of Louis Vuitton, Moët & Chandon, and other luxury brands —agreed to acquire Tiffany & Co for $16.2 billion, marking the sector's largest-ever deal.

Other luxury retailers that fall under the Kering family include Yves Saint Laurent, Bottega Veneta & Mont Blanc.

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, https://cc.com.mt/. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.