Burberry Shares Skyrocket as Billionaire Albert Frere Acquires 3% Stake


Billionaire Albert Frere has purchased a 3 percent stake in Burberry Group Plc, sending stocks surging in London. The recent disclosure has fueled industry whispers that the Belgian businessman, who is also Belgium’s richest man, is moving towards the boosting of British trenchcoat maker’s earnings.

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As CEO Christopher Bailey gets ready for the monumental handing over to Marco Gobbetti this July, the new investment comes as a timely accompaniment to what may come as a pivotal point for the UK brand.

According to Zuzanna Pusz, an analyst at Berenberg, it is imperative that a company seeking to bounce back from two years of falling profits have a greater cost discipline. Indeed, signs of recovery for the luxury label have been reported in key markets, including China.

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“Burberry has always been a good candidate for activist investors,” adds Pusz.

Frere purchase comes via investment firm Groupe Bruxelles Lambert SA (GBL), sending Burberry shares rising 3.7 percent, marking its highest since May 2015 at the close of trading. The billionaire businessman, who is a close business associate of LVMH CEO Bernard Arnault, boasts a track record of pushing for performance within his companies.

In 2015, Adidas shares almost doubled after GBL bought a stake in the sportswear label.

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