Coach shares rise 5 percent on report of sale rumors
(Reuters) - Coach Inc (COH.N) shares rose 5 percent on Wednesday to $48.90 after a DealReporter article said there were rumors among investment bankers that the leather-goods maker was exploring a sale of the company.
A Coach spokeswoman said the company does not comment on speculation or rumors.
A share price of $48.90 would give Coach a market value of $13.7 billion.
DealReporter cited two bankers as saying there were rumors Coach was exploring a sale, and a third banker who said Coach was rumored to be exploring strategic options, but was unable to provide specific information.
Last month, Coach reported disappointing quarterly earnings and has faced growing competition from companies like Michael Kors Holdings Ltd (KORS.N). Two weeks ago, Coach said that longtime Chief Executive Lew Frankfort would step down next year and be replaced by the head of its international business.
On Wednesday, Coach announced it had hired a former Nike Inc (NKE.N) executive to oversee the changes it is making to its stores.
(Reporting by Phil Wahba in Toronto; Editing by Maureen Bavdek)