Handbag maker Coach Inc (COH.N) said it would buy Kate Spade & Co (KATE.N) for $2.4 billion as it looks to tap the popularity of its smaller rival’s quirky satchels and totes among millennials.
The $18.50 per share offer in cash represents a premium of 9 percent to Kate Spade’s Friday close. Kate Spade’s stock was trading at $18.35 before the opening bell on Monday.
The shares have risen 17 percent since Dec. 27, a day before the first report that the company was looking to sell itself.
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