potentially makes a lot of sense ?

LONDON (AFX) - Shares in laura Ashley Holdings PLC stormed more than 17 pct
higher in mid-morning deals amid reports Burberry Group PLC may be interested in
buying a stake in the fashion and home furnishings retailer, dealers said.
The Financial Mail on Sunday reported that Rose Marie Bravo, the chief
executive of Burberry is looking at a bid for the beleaguered chain store.
The paper said Burberry has sounded out KKR about a potential bid for the
group which is 47 pct owned by Malaysian United Industries.
But Merrill Lynch analysts dismissed the likelihood of a such a bid.
"We would rather expect Burberry to acquire either another luxury brand or
take an equity stake in one of its suppliers to enhance existing operational
capabilities," they said, in a note to clients.
They said the only benefit would be in terms of potential supply chain
synergies but that Laura Ashley would not be the best acquisition in that
respect.
They also pointed out any such move would likely raise doubts among Burberry
shareholders as it would reinforce Burberry Group's exposure to the UK market -
the weakest of the company's markets this year.
At 10.08 am, Laura Ashley shares were up 2 pence, or 17.78 pct, at 13-1/4
pence. Burberry shares were up 3 pence at 353 pence.