UK-based financial website, Betaville is reporting the possibility of a $20 million Coach and Burberry merger. According to Betaville, “Coach has been talking to financial advisers from Evercore for several weeks on the potential deal, according to two sources familiar with the situation.” Burberry recently announced on the UK regulatory news service that it bought its own shares as part of share buy-back scheme, implying the company isn’t in formal takeover talks. 

Per Luca Sola, Managing Director and Sector Head Global Luxury Goods for Exane BNP Paribas, “Burberry could indeed be seen as the British Coach, as we as analysts had pointed out years ago. Yet, contrary to Coach, most of the efforts at BRBY in the past 20 years have gone in the direction of elevating the brand and moving it into mega-brand price territory, rather than squarely into accessible luxury.” He further held: “A merger of Coach and Burberry would primarily be a merger of problems. M&A history in luxury has shown that mergers don’t obviously help in regaining brand traction and desirability, while cost efficiency in the face of declining brand momentum are often just a way to run in order to stand still.”

A Reuters source has shot down the rumors. “This is completely speculative. There are no negotiations underway, Burberry is not talking to Coach,” according to one of the publication’s sources said. Another source with first-hand knowledge of the matter said such a plan could not be on the cards since the two companies pursued very different strategies.

Burberry declined to comment.