Kellwood Co.'s shares rose 10 percent Tuesday to close at $18.12 on the New York Stock Exchange after Sun Capital Securities Group LLC repeated for the third time its bid of $21 a share for the St. Louis-based vendor.
But the interest in Kellwood's shares following the unsolicited offer doesn't bode well for the company, which urged its shareholders to hold off taking any action until its board reviews the bid and "make[s] a recommendation to shareholders in due course," according to a statement by Kellwood Tuesday morning.
The Kellwood statement came out while Sun Capital was holding a conference call to make its case for why shareholders should accept the bid. Kellwood pointed out the bid is the same $21 a share offer Sun Capital made twice before this fall — and which Kellwood refused both times.
"No, the price hasn't changed — they are lucky it hasn't been reduced," Jason Bernzweig, vice president of Sun Capital, said in response to Kellwood's statement Tuesday. "Absent our offer, this stock would be trading down dramatically."
Earlier this month, Kellwood made its own stock buyback offer totaling $80 million of stock at market price, then followed last week with a $60 million tender offer for its 2009 notes, using the $162 million in cash the company received from selling its Smart Shirts subsidiary.
Sun Capital has said it would lower its bid to $19.50 if Kellwood does not terminate the bond tender offer.
The public pressure on Kellwood is mounting, as Sun Capital took the offer directly to shareholders, hosted a conference call and launched a Web site, kellwoodvalue.com, that includes its letters to Kellwood.
On the call, Sun Capital, which owns 9.9 percent of Kellwood's stock, predicted the $1.6 billion vendor would dissolve its poison pill, which would block a hostile takeover, if enough shareholders supported the bid.
Bernzweig said that, based on conversations he's held, he is optimistic shareholders will accept the bid, although he expects Sun Capital will have to extend its Feb. 12 expiration date until mid-March. If its latest bid is rejected once again, Sun Capital has said it would exercise its power as Kellwood's second-largest shareholder and seek to nominate its own board for the company. Bernzweig declined to name who Sun Capital would nominate.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)