Since Thursday, speculation has been circulating in the media about a possible takeover offer of Authentic Brands Group (ABG) for Guess Inc. These rumors have led to a significant increase in the price of the shares of the US clothing company and could start a bidding competition. A Bloomberg report on a potential competitive offer from ABG caused the Guess shares by 17 percent on Thursday afternoon-an indication that the shareholders might support a takeover inside.
According to Bloomberg, Authentic, the parent company of brands such as Ted Baker, Reebok and Eddie Bauer, is currently working on a takeover offer to counter the cash offer of $ 13 per share that GUS received from WHP Global. According to the media company, the negotiations are still ongoing, although no final decisions have been made so far.
WHP had submitted a non -binding takeover proposal for Guess last month, whereupon the company used a special committee to check the offer. The offer excludes the shares that are owned by three GUess managers-including co-founder Maurice Marciano-as can be seen from a submission.
A deal between WHP and Guess was initially considered likely, since there is already an existing business relationship: Both companies had jointly taken over the fashion brand RAG & Bone. As part of the joint venture, they secured the rights to the intellectual property of the New York label, while Guess took over the operational business and branch management in the USA and Great Britain.
Authentic’s potential offer does not come completely out of nowhere either. The company under the direction of Chief Executive Officer Jamie Salter is known to pursue a acquisition -heavy business model, in which it works with global licensees: inside to contribute to the international expansion of a brand. So far, the focus was on the establishment of a portfolio of established fashion brands, which include, among other things, Forever 21, Champion, David Beckham and Juicy Couture.
Fashionunited asked the Authentic Brands Group and Guess to comment.
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