Mulberry said its largest shareholder has rejected a fresh takeover approach from Mike Ashley’s Frasers Group for the luxury handbag maker.
The London-listed fashion firm told shareholders on Monday morning it is working with advisers from Houlihan to consider its position.
It added that a further announcement will be made in due course.
On Friday, Sports Direct owner Frasers Group tabled a sweetened £111 million approach to buy Mulberry.
Frasers – which has increased its luxury business in recent years, including building up its stake in Hugo Boss – already owns a roughly 37% stake in the company.
It offered to pay 150p per share for the rest of the business it did not already own in order to take control.
It came after a previous 130p per share move, which valued Mulberry at £83 million, was rebuffed earlier this month.
On Monday, Mulberry confirmed that its largest shareholder Challice, a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng, said they did not plan to sell to Frasers.
The group is majority shareholder with a roughly 56% stake in the company and would need to vote in favour for any takeover deal to be approved.
Mulberry said that Challice “has no interest in either selling its Mulberry Shares to Frasers or providing Frasers with any irrevocable or other undertaking”.
Challice added that it feels it is “an inopportune time for Mulberry to be sold and particularly regrets the distraction that the possible offer is bringing to the company”.