One of Watches of Switzerland Group Plc’s biggest investors cut its stake in the UK-listed timepiece retailer less than 24 hours after Rolex SA decided to buy a rival, Bucherer AG.
(Bloomberg) — One of Watches of Switzerland Group Plc’s biggest investors cut its stake in the UK-listed timepiece retailer less than 24 hours after Rolex SA decided to buy a rival, Bucherer AG.
Edinburgh-based investment manager Abrdn Plc on Friday sold 5 million shares, lowering its stake to 6.1% from 8.2%, filings with the London Stock Exchange show.
Watches of Switzerland shares sank a record 21% that day as analysts warned of a risk that Rolex starts directing supply of its watches toward Bucherer and away from third-party sellers like Watches of Switzerland. Rolex announced the acquisition late Thursday.
Abrdn and Watches of Switzerland declined to comment.
Abrdn published a blog post on its Watches of Switzerland investment last year, saying the retailer’s partnerships with watchmakers like Rolex allows it to secure better inventory allocations than competitors.
–With assistance from Andy Hoffman and Lisa Pham.
(Adds Watches of Switzerland declining to comment in fourth paragraph.)
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