Mulberry's owner has rejected increased £111m bid from Frasers Group and has ‘no interest’ in selling to the retail giant

Frasers outlined a revised offer for the luxury group on Friday that valued Mulberry at £111m, with shareholders being offered 150p per share in cash.

Mulberry said in a statement its majority shareholder Challice Ltd has “no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking”.

Challice also said it was “an inopportune time for Mulberry to be sold and [it] particularly regrets the distraction that the possible offer is bringing to the company and its management team at this time”.

The Mulberry board said in light of the comments from Challice, it was working with advisers to consider the company’s position and added that it will provide a further update in due course.

Mulberry said: “The board highlights that there can be no certainty that an offer will be made for the company nor as to the terms on which any such offer might be made.”

The news comes after Frasers Group first made a surprise takeover bid for the brand at the end of September in what it called an attempt to avoid “another Debenhams situation”.

Mulberry rejected the initial £83m takeover bid the following day and said the offer did not recognise “the company’s substantial future potential value”.

Following the rejected bid, Frasers Group upped its stake in Mulberry and took its holding to between 36.9% and 37.3%.

Mulberry remains in an offer period and Frasers must announce by October 28 whether or not it will make a firm offer.