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* Kering, Moncler held exploratory talks about a deal -
Bloomberg
* Moncler CEO says no concrete plan in the works
* Italian coat maker is one of luxury sector's big successes
* But a takeover may not add value for Kering - sources
By Sarah White, Claudia Cristoferi and Pamela Barbaglia
PARIS/MILAN, Dec 5 (Reuters) - The chief executive and top
shareholder of puffer jacket maker Moncler played down
speculation around a takeover by Gucci-owner Kering on
Thursday, saying the two firms sometimes talked but that there
was no deal in the works.
Shares in the Italian label, which has become a luxury
industry darling in recent years after a makeover under CEO Remo
Ruffini, surged earlier after Bloomberg reported that it had
held exploratory discussions with Kering.
That heightened expectations of more dealmaking in a luxury
industry dominated by vast conglomerates, although some banking
and sector sources said they were sceptical about the merits of
a combination for both sides.
Ruffini, who bought Moncler in 2003, said in a statement
that from time to time "he maintains contacts and interacts with
investors and other sector participants, including the Kering
group, in order to explore strategic potential opportunities to
further promote the successful development of Moncler."
"At the moment, however, there is not any concrete
hypothesis under consideration," he added.
Moncler's shares hit record highs in Milan earlier and were
up 8.5% after Ruffini's comments, while Kering shares were up
1.2% in Paris. The company declined to comment.
Now worth over 10 billion euros ($11 billion) on the stock
market, Moncler would likely command a hefty premium, several
banking sources said, and would not drastically rebalance
Kering's portfolio, which is heavily reliant on clothing labels.
Its larger Paris-based rival LVMH, owner of Louis
Vuitton, recently raised the stakes by snapping up U.S. jeweller
Tiffany, increasing its presence in one of the
fastest-growing pockets of the luxury industry.
Still, the speculation around Moncler comes as the outlook
for standalone brands becomes trickier, with cash rich groups
like LVMH and Kering drowning out competitors with more spending
on social media marketing and the hire of star designers.
The conglomerates are also better equipped to absorb the hit
from protests in Hong Kong and invest in markets like mainland
China, which could motivate some labels to seek buyers.
FASHION MOMENT
Under Ruffini, Moncler - which derives its name from
Monestier-de-Clermont, a mountain village near Grenoble in
France, and which originally made sleeping bags - has developed
a more fashionable edge.
It listed on Milan's bourse six years ago and has thrived by
expanding in markets like Asia, while rejigging its strategy.
It now invites guest designers to dream up more fanciful
versions of its puffers, which sell for over $1,000, dresses
movies stars in quilted gowns, and holds Instagram-friendly
events in its stores.
Like its rival Canada Goose, which makes more
functional winter jackets, Moncler has also benefited from
growing consumer demand for high-end streetwear.
"This trend is not a fashion moment, people change the way
they dress, they want to be more free, more casual," Ruffini
told Reuters in a 2018 interview.
But analysts and industry insiders have sometimes questioned
whether its model, which is heavily reliant on a single product,
is sustainable.
Ruffini, who owns more than 22% of the group, had talked to
Kering about a potential deal around the time of its flotation,
two sources familiar with the matter said.
He has given few indications since that he would be willing
to sell, however.
KERING ON THE LOOKOUT
Kering, which also owns Saint Laurent and is run by
billionaire Francois-Henri Pinault, is meanwhile widely expected
to seek out an acquisition to offset its reliance on Italian
fashion label Gucci for profits.
But Moncler may not be the perfect fit.
"Remo Ruffini and his senior management team have driven the
brand in near perfect manner – taking it to unprecedented
heights. Adding value by acquiring Moncler is therefore not
easy," Bernstein analyst Luca Solca said in a note.
Another banking source said Kering might think twice about
buying a lifestyle label again after needing years to turnaround
sports brand Puma, which it purchased in 2007 and spun off to
its shareholders in 2018.
Shares in Burberry, Salvatore Ferragamo
and Tod's, which are often cited by bankers as
potential takeover targets, also rose on Thursday.
($1 = 0.9073 euros)
(Reporting by Sarah White in Paris, Pamela Barbaglia in London
and Claudia Cristoferi in Milan;
Editing by Keith Weir/Jane Merriman/Kirsten Donovan)
