Jul 9, 2018
Randa Accessories remains committed to buying Perry Ellis despite rejection
Jul 9, 2018
Men’s accessories maker Randa on Monday said it remained committed to buying Perry Ellis International Inc even after the apparel maker rejected the company’s higher offer in favor of its founder’s bid.
In a new letter to Perry Ellis, Randa Chief Executive Officer Jeffrey Spiegel said “we are confident that your shareholders will conclude that $28 per share is superior to $27.50 per share, and thus that our proposal is in fact a superior proposal.”
Randa Accessories last week offered to buy Perry Ellis for $28 per share, 50 cents higher than the offer from Perry Ellis founder George Feldenkreis, which the company agreed to in June.
The special committee appointed by Perry Ellis to review the offers rejected Randa’s bid, citing concerns about the financing of the deal and certain requirements that the Randa offer did not provide such as granting of due diligence access or allowing negotiations for the company to shop itself to other bidders.
Randa, which also backed its mode of financing, said in a statement that since Perry Ellis entered into the transaction with Feldenkreis, it had not once directly contacted Randa, despite having a higher proposal.
Randa said it had no choice but to engage publicly with Perry Ellis shareholders through the letter after the company said last week that a deal with Randa was not in the best interests of its shareholders.
Feldenkreis, who is the second largest shareholder, aims to take back control of the company from which he was ousted as chairman in 2017.
Randa also said it could reach a mutually acceptable agreement within 24 hours if Perry Ellis would give it access to key business clients, a request that has not previously been granted by the special committee.
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