The Perry Ellis board needs to work on its math.
The New York company trying to take the apparel company private said its $28-a-share offer is clearly “superior” to a rival bid from the firm’s founder — but was nonetheless deemed “insufficient.”
“We are confident that your shareholders will conclude that $28.00 per share is superior to $27.50 per share, and thus that our proposal is in fact a superior proposal,” Jeffrey Spiegel, chief executive of Randa Accessories, said in a letter to the Perry Ellis board sent Monday.
The Randa letter comes days after the Miami-based apparel company shot down the $28 bid — in favor of a $27.50 offer from George Feldenkreis.
Perry Ellis called Randa’s offer “highly conditional, non-binding and insufficient.”
But Randa countered that not only is its offer “superior” — it can be completed faster than the Feldenkreis deal.
“Our proposal would not require the added complexity, cost and timing associated with the shareholder litigation and SEC filings and review associated with the [Feldenkreis] Transaction,” Spiegel wrote.
Perry Ellis accepted the Feldenkreis offer last month after a four-month review by a special committee on the board and some battling between Feldenkreis and the company he founded. In May, Feldenkreis nominated four members to the Perry Ellis board in the hopes of winning a speedy approval.
But a proxy fight was avoided as Perry Ellis finally accepted Feldenkreis’ offer in June.
“This transaction delivers an immediate cash premium and is in the best interest of all Perry Ellis shareholders,” chairman David Scheiner said in a statement last month.
Randa’s upsize offer came two weeks later.
“We hope that the Special Committee will quickly reach the unavoidable conclusion that our proposal is reasonably expected to lead to a superior proposal,” Spiegel wrote.
Perry Ellis shares closed Friday at $28.37.
Reps from Perry Ellis did not immediately respond to requests to comment.