Burberry shares jump on Moncler bid report
Moncler says it won39;t comment on 39;unsubstantiated rumours39;
Combination would create an outdoor clothing specialist giant

MILAN, Nov 4 Reuters Shares in Burberry rose as much as 8 on Monday after website Miss Tweed reported that Italy39;s Moncler was considering a bid for the Londonlisted luxury group to create an outdoor clothing specialist giant.

Moncler, known for its puffer jackets, on Sunday said it would not comment on unsubstantiated rumours of a possible deal between the two luxury brands. Its shares were down 0.35 at 0930 GMT, slightly underperforming the sector.

Burberry, which had a market valuation of nearly 3 billion pounds 3.9 billion as of the last close, told Reuters it does not comment on speculation.

The company39;s shares were up 4.5 at 0930 GMT. The stock has plummeted about 40 so far this year.

Italian broker Intermonte said a possible deal between the two luxury groups is an unlikely scenario, as Moncler would see the relaunch of such a large company as Burberry as risky.

Given the ongoing work in progress for the acquisition of Stone Island by Moncler from 2020, which so far has somewhat disappointed the market, the timing might be surprising, UBS analysts said.

Burberry, known for dressing the English upper class in its classic camel, red, and black check prints, has lagged behind its peers as it struggles to revive demand for its clothing.

The British luxury group, which scrapped its…