Burberry is at risk of a takeover, City analysts have warned, after losing a fifth of its value since the start of the year. A profit warning from Burberry’s Paris-listed rival Kering, which owns Gucci, triggered a slump in the British fashion brand’s shares on Wednesday. The 2.5pc drop means Burberry has lost almost 20pc of its value since the start of the year, leaving the business worth £4bn. Abrdn investment manager Sasha Kachanova said: “Burberry remains a potential takeover target, particularly at its current valuation.” A survey of 17 City M&A desks, fund managers and analysts conducted by Bloomberg last year found Burberry was among the top companies floated as potential takeover targets, alongside Germany’s Hugo Boss and Swiss luxury group Richemont. Ms Kachanova said of Burberry: “As the sole British brand of scale operating independently – a rarity in the luxury industry – it boasts a rich heritage and the opportunity to enhance its iconic product lines and accessories.” Abrdn is one of Burberry’s top twenty shareholders, although Ms Kachanova doesn’t hold the stock directly. Speculation about a possible takeover comes amid a wave of dealmaking in the City. Low valuations have made even the biggest businesses possible targets,...