Watches of Switzerland held discussions about possible purchase offers

According to three persons with knowledge of the situation, the London Stock Exchange-listed Watches of Switzerland Group has been in discussions in recent months about possible offers to take the upscale watch chain private.

Due to the increasing demand for luxury timepieces from companies like Cartier and Rolex, the company’s shares. Which are part of the FTSE 250 index and whose revenues are split nearly evenly between the US and the UK, have increased 55% this year to about 7.20 British pounds.

However, according to LSEG statistics, the shares are still less than half of their 2022 peak. Which is indicative of the recent slowdown in European sales of luxury goods.

Following the acquisition of the Swiss retailer Bucherer by its primary supplier, Rolex. Which some analysts saw as a danger to the brand’s connection with Watches of Switzerland, its stock price dropped in 2023.

According to two sources, Watches of Switzerland CEO Brian Duffy responded to the early bids because he thinks the stock market undervalues the company. One of them also stated that no official offer had been made. A second source, strategic bidders and private equity investors have shown interest in the business.

The third source, the corporation was looking for an offer that was far more than 7.50 British pounds per share.

Watches of Switzerland stated that it does not comment on rumors or speculation. Rolex declined to comment. Watches of Switzerland’s shares rose as much as 8.2%, reaching 778.5 pence—their highest level since May 2023—following the publication of the Reuters report.

The company’s optimistic outlook in May was bolstered by the strength of the U.S. stock market, although rising gold prices squeezed margins.