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Pacsun Proxy Threat

Two days after withdrawing its buyout offer for Pacific Sunwear of California Inc., extreme sports retailer Adrenalina again sought a meeting with PacSun.

PACSUN PROXY THREAT: Two days after withdrawing its buyout offer for Pacific Sunwear of California Inc., extreme sports retailer Adrenalina again sought a meeting with PacSun management to “avoid a costly proxy fight.” In a letter to Sally Frame Kasaks, PacSun chairman and chief executive officer, Adrenalina chairman and ceo Ilia Lekach said a meeting was in the “best interest of all shareholders.” Adrenalina, which operates three stores, offered to buy the 942-unit PacSun in October for $4.50 a share, valuing the company at approximately $300 million. The company then increased its bid to $5 a share, or about $329 million. PacSun rejected both offers and had no comment on Adrenalina’s latest move. PacSun shares rose 10.6 percent to close at $1.99 Wednesday. Adrenalina’s stock wasn’t traded during the day and remained at 70 cents a share.

This story first appeared in the December 18, 2008 issue of WWD.  Subscribe Today.