Men’s accessories maker Randa said on Monday it would engage with Perry Ellis International Inc’s shareholders to pressure the apparel maker into accepting its bid after Perry Ellis’s board rejected its takeover proposal.
Randa’s latest move comes a week after it offered a higher bid than Perry Ellis founder George Feldenkreis, who has been trying to take control of the company from which he was ousted in September 2017.
Randa offered $28 per share, a month after the company had agreed to its second largest shareholder Feldenkreis’s $27.50 per share proposal. His son, Oscar, is Perry Ellis’s current chief executive.
Without changing any of the deal terms, Randa on Monday said in a letter to Perry Ellis’s special committee, “We are confident that your shareholders will conclude that $28 per share…is in fact a superior proposal.”
While rejecting the offer, the special committee cited concerns about Randa’s financing and said its proposal did not include certain requirements related to due diligence or have negotiations about a competing takeover proposal.
“Our financing is pure best in class…these are 5-10 top financial institutions that do this in the world (and are) as good or better than anything that the insiders have,” David Katz, chief marketing officer of Randa, told Reuters in an interview.
Randa said it was forced to publicly engage with shareholders as Perry Ellis had not directly contacted the men’s accessories maker for talks after it signed a deal with Feldenkreis.
Meanwhile, several individual and institutional investors of Perry Ellis have reached out to Randa since it publicly offered to buy the company, Katz said.
“We don’t think hostile is the right process here. We think what we have to do is put enough pressure on the special committee and the board to just engage.”
Perry Ellis was not immediately available to comment. Its stock rose 0.4 percent at $28.50 in afternoon trading on Monday. The stock is up 5 percent since the day before Randa made its offer public on July 2.
(Reporting by Siddharth Cavale and Aishwarya Venugopal in Bengaluru; Editing by Bernard Orr and Arun Koyyur)