Watches of Switzerland Shares Gain on Takeover Talk

Watches of Switzerland Group (LON: WOSG) shares closed more than 4% higher on Monday, sparked by a Reuters report that the luxury watch retailer has held talks over potential offers to take the company private.

According to Reuters, three people close to the matter said the FTSE 250 firm has engaged with prospective buyers in recent months, though no formal offer has yet been made.

Chief Executive Brian Duffy reportedly responded to the initial approaches because he believes the stock market undervalues the business, two sources told Reuters. Interest has come from both private equity funds and strategic bidders, while a separate source indicated the company is seeking an offer well above £7.50 per share.

The news initially sent shares as high as 778.5p — an 8.2% intraday jump and the stock’s highest level since May 2023 — before easing slightly to close up over 4% on the day. Watches of Switzerland shares have now rallied roughly 55% so far this year, buoyed by robust demand for high-end pieces from brands including Rolex and Cartier.

Despite the rally, shares remain less than half their 2022 peak, reflecting a broader European luxury slowdown and lingering concerns since Rolex’s 2023 acquisition of Swiss retailer Bucherer, which some analysts viewed as a potential threat to the watchmaker’s relationship with Watches of Switzerland.

The company, which declined to comment on the speculation per Reuters, is due to publish full-year results on Tuesday, which investors will watch closely for further clarity.