Black describes the ownership structure as “tectonic”, while relations between the two major shareholders appear far from harmonious.
Rejecting the bid, Mulberry said Ong had “no interest in supporting the possible offer”, adding that it would push ahead with its plan to raise £11m from shareholders to help shore up its balance sheet.
Frasers hit back, saying it had not been told about the fundraising plans and would have been willing to underwrite the sum in its entirety, potentially on better terms.
The takeover bid reflects efforts by Ashley to move his retail empire upmarket. This began with his takeover of the Flannels department store chain, which Black describes as “Selfridges for normal people who drive high-level Audis around council estates and do various other things in the cash economy”.
The tycoon has also increased his stakes in Hugo Boss and Savile Row tailor Gieves and Hawkes.
“I can see Mulberry fitting in with both Flannels and Frasers so on that front, from a corporate synergy front, there is method in Frasers’ madness,” says Black.
De Mello describes the swoop as “opportunistic”, drawing comparisons with how Ashley has swooped on low valuations for retailers such as Asos and Boohoo.
Frasers now has until Oct 28 to make a firm offer or walk away, but the company has already fired the starting gun on what could be a messy takeover fight.
Ashley has a long history of boardroom tussles. And while he has handed over the day-to-day running of his empire to son-in-law Michael Murray, there’s no doubt that the tycoon’s pugnacity remains a driving force behind the Frasers strategy.
In a statement this week, the retailer said it would not “accept another Debenhams situation where a perfectly viable business is run into administration”, referencing Ashley’s bitter row with the department store chain after his stake was wiped out during its collapse in 2019.
For Black, the key question remains whether the initial £83m is a precursor to an improved bid or whether it will simply trigger a “Mexican stand-off” between two conflicting shareholders.
De Mello adds: “[Ashley] is going to ruffle a lot of feathers at Mulberry as a result of the nature of what he’s doing, but I don’t think he cares too much.”