Frasers ups stake in Mulberry following rejected bid

Frasers, controlled by tycoon Mike Ashley, has increased its holding in Mulberry after buying another tranche of shares through a “clawback” arrangement for big shareholders.

Frasers subscribed to almost 4 million shares in Mulberry at 100p per share, taking its holding in the company to ”between 36.9% and 37.3%.”

Despite the size of its holding, Frasers has won dispensation from being obliged to make a cash offer for Mulberry because investor Challice controls about 56% of the business.

Mulberry remains in an offer period, and Frasers must anounce by close of business on October 28 whether or not it will make a firm offer.

Mulberry, supported by Challice, has already rebuffed an £83m takeover offer from Frasers, which it said did “not recognise the company’s substantial future potential value.”