By  on August 11, 2014

Shares of Coach Inc. slid 1.4 percent to $36.18 Monday as the company managed to hold on to some of Friday’s gains, which were driven by a rumor that Kering was contemplating an acquisition of the firm.

The stock jumped 5.4 percent Friday as the rumor spread.

Despite the lurch in stock price, analysts and mergers and acquisitions experts didn’t give the whispers much credence.

“A takeout seems unlikely especially from a luxury brand [company] like Kering,” said Ike Boruchow, an analyst at Sterne, Agee & Leach Inc. who covers Coach. “I don’t think you can make the numbers work either. It would have to be a sizable acquisition.”

Coach has a market capitalization of about $10 billion, which would make it one of the largest fashion takeovers in years.

Boruchow also noted that Coach is in the midst of a turnaround and is using up its cash quickly, making it a more difficult company to buy and then operate.

“Based on the North American cash burn that we model right now, we think they’ll have to add $750 million to $1 billion in debt over the next 12 to 18 months,” he said. “They’re basically not self-financing their U.S. business right now.”

Perry Ellis International Inc. was also giving back some of the takeover-rumor gains it saw last week and fell 2.4 percent to $20.42. The company was reported to be considering a sale.

In general it was a sleepy day for stocks in the U.S. The Dow Jones Industrial Average inched up 0.1 percent to 16,569.98 on Wall Street. Markets were more robust overseas. Frankfurt’s DAX led European stocks higher, gaining 1.9 percent to 9,180.74 and the Tokyo’s Nikkei 225 led in Asia, gaining 2.4 percent to 15,130.52.

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