Perry Ellis Board Said to Stick With Feldenkreis Agreement

Looks like the Perry Ellis International Inc. board will honor its agreement with George Feldenkreis to take the company private.
On the recommendation of its special committee, the Perry Ellis board last month decided to accept Feldenkreis’ offer to buy the company at $27.50 a share, a transactional value of $437 million.
On Monday, Randa Accessories jumped into the fray with a competing non-binding offer to acquire the company at $28 a share, or $444 million offer.
Investors applauded the competition and pushed shares of the company above both offers. The stock closed down 0.2 percent t $29.28.
But sources said Tuesday night that the board met earlier in the day to review Randa’s offer and concluded that it wasn’t sufficient to warrant a change in course.
Had the Perry Ellis board done otherwise, the company also would have been on the hook for an $8.5 million break-up fee.
As WWD first reported, there had been a men’s accessories firm that was kicking the tires when the special committee was reviewing Feldenkreis’ proposal.
WWD on Monday also noted that the Perry Ellis board’s responsibility to shareholders wasn’t just on price in regard to its analysis of Randa’s offer, but also what risks it might take on should there

Follow WWD on Twitter or become a fan on Facebook.

Read More…

Source link

Write A Comment