Coach eyeing Jimmy Choo for £1 billion

New York-based handbag giant Coach is tipped as the frontrunner to acquire famous shoe brand Jimmy Choo in what is said to be a £1 billion or about $1.3 billion deal. This is seen as among the steps the company is taking to strengthen its foothold in UK's luxury goods market.

The London-based footwear firm was put on sale last month with a minimum tag of £700 million or about $904 million.

Its majority owner, JAB Holding, which is the investment vehicle of Germany's wealthy Reimann family, supported the move as the company plans to shift focus from high-end goods to food and beverages.

Coach is said to be looking for luxury brands across the UK after fashion house Burberry reject multiple offers for a takeover worth above £20 million or about $26 million.

Reports revealed that the company's recent hiring of former Jimmy Choo boss Joshua Schulman as chief executive of its brand will give Coach a considerable advantage over rivals suitors.

The handbag maker is expected to face competition from Middle East buyers because of Jimmy Choo's popularity in the region. Among those seen to plot a bid is Qatar's Mayhoola, which owns stakes in several luxury brands, including Anya Hindmarch, Valentino and Balmain.

If Coach succeeds, it will the fourth time the shoe brand will change ownership since being founded in 1996 by shoe designer Jimmy Choo and former Vogue accessories editor Tamara Mellon.