Breaking News | Coach Shares Rise on Report of Sale Rumours

NEW YORK, United StatesCoach Inc. shares rose 5 percent on Wednesday to $48.90 after a DealReporter article said there were rumours 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 rumours.

A share price of $48.90 would give Coach a market value of $13.7 billion.

DealReporter cited two bankers as saying there were rumours 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. 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. executive to oversee the changes it is making to its stores.

Reporting by Phil Wahba in Toronto; Editing by Maureen Bavdek; Copyright (2013) Thomson Reuters.