Everlast investor believes company is worth more than the $26.50 per share offered by the Hidary Group

By Lisa Kerner

Charlotte, N.C., June 4 - Everlast Worldwide Inc. investor Aquamarine Capital Management, LLC said it objects to the company's agreement to be acquired by the Hidary Group for $26.50 per share, or about $146 million.

Aquamarine, with a 2.3% stake in the company, intends to vote against the takeover proposal, believing that the offer price should be closer to $50.00 per share, according to a company news release.

The investor said it believes that the 90-year-old Everlast brand's media exposure in movies and professional boxing make it one of the few companies able to compete with "global juggernauts" such as Nike, Adidas and Puma.

In addition, Aquamarine mentioned Everlast's 30-day "go-shop" period for competing bids to remind shareholders that the $26.60-per-share offer is not a done deal.

The $26.60-per-share price is a 14.5% premium to Everlast stock's closing price on May 31 and a 30% premium to the average closing price over the last month.

Everlast's board of directors approved the agreement, which is subject to shareholder approval. The transaction is slated to close in the third quarter of 2007.

New York-based Everlast designs, manufactures and markets boxing and fitness-related sporting goods equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.