Shares of the British luxury brand rose 8.1% in London on October 21 following a report that suggests that Burberry and Coach were in negotiation talks over a possible deal.

Both companies declined to comment but, according to sources close to Burberry, there “are no negotiations under way”.

Given the two different strategies of both brands and the difficulties they have been facing in the past quarters with a downturn in luxury spending, market analysts say such a deal would not help them regain “brand traction or desirability”.

It remains to be confirmed if a deal is being discussed.

Sources: Bloomberg/Fashion Network