One of Revlon Inc.'s minority shareholders has taken issue with chairman Ronald Perelman's recent share buying spree.Perelman, also the chairman and chief executive officer of MacAndrews and Forbes Inc., has spent the past few months quietly upping his ownership at Revlon, which now stands at 84.6 percent. But Mittleman Brothers Investment Management, which owns about 5.7 percent of Revlon, has voiced concern that Perelman will try to take the company over and squeeze out minority shareholders.Mittleman has written two letters to Revlon's board about the matter, urging board members to protect minority shareholders from "risk." The firm suggested Revlon adopt a poison pill in favor of minority shareholders and Perelman agree to limit his ownership to less than the 90 percent for the next five years — so that minority shareholders can reap the potential benefits from the Revlon-Elizabeth Arden merger executed in 2016.In its letter, Mittleman stated concern that Perelman's stock purchases could be an effort to execute a short-form merger, which could be done if Perelman were to own 90 percent of the business.In a response to Mittleman's first letter, MacAndrews clarified that it doesn't intend to increase its position in Revlon to more than 89 percent, and that there are no plans to take Revlon private. MacAndrews and the board agreed not to take over the company for one year as of Sept. 15, but Mittleman took issue with that solution in a second letter to Revlon's board, dated Oct. 17.MacAndrews and Forbes wrote:[caption id="attachment_10458785" align="alignleft" width="200"] Ron Perelman[/caption]"Should MacAndrews & Forbes determine to undertake transactions to increase its beneficial ownership above 89 percent of the issued and outstanding common stock or to take Revlon private, MacAndrews & Forbes agrees to: (1) notify the board at least five business days in advance of such transactions; and, prior to consummating such transactions, (2) convene a board meeting; (3) support the creation of a special committee of independent directors empowered to select its own advisors; and (4) negotiate with that special committee regarding the terms of such transactions by MacAndrews & Forbes, in order to promote the interests of all shareholders, including minority shareholders."Mittleman responded:We "believe that the fractional accommodation…made by Mr. Perelman in response to our request for a justified increase in minority shareholder protection is clearly inadequate," Chris Mittleman, chief investment officer of the firm wrote.One year isn't enough, the firm contends, because it limits Mittleman's ability to reap the benefits of Revlon's Arden acquisition. "Minority shareholders should be entitled to enjoy at least a couple of years of those expected incremental free cash flows once the associated costs are finished in 2020," Mittleman wrote. Revlon chief executive officer Fabian Garcia said in January that over the next five years, he wants to grow Revlon into a $5 billion business, and Mittleman said that "prospective return that we as shareholders would rather not miss."A spokesman for Perelman and MacAndrews and Forbes declined to comment on Perelman's motives surrounding the stock purchases."To be clear, we have no evidence whatsoever that any such plan to squeeze out minority shareholders by Mr. Perelman is in progress or even being contemplated, but a simple Google search using the terms 'Ron Perelman minority shareholders' reveals a history of sporadic prior actions by Mr. Perelman that appear to have been at odds with minority shareholder interests at various Perelman-controlled companies over the past 25 years or so, including with Revlon itself in 2009," Mittleman wrote.The firm is referring to Perelman's attempt to buy out minority shareholders in 2009 to take Revlon private. That deal failed and spurred a lawsuit with the SEC, which charged the company with violating federal securities laws and misleading shareholders during the process. In 2013, Revlon agreed to pay an $850,000 fine.Take-private rumors also swirled in early 2016 when MacAndrews & Forbes said it would explore "strategic alternatives" for Revlon — a statement that can sometimes mean sale. But later in the year, Revlon said it would take over Elizabeth Arden, and in 2017, reorganized itself into three new business segments under Garcia. Garcia's vision for the business includes getting to $5 billion in sales by 2022 — for fiscal year 2016, Revlon posted $2.3 billion in net sales.Perelman's recent share purchases come as Revlon's stock price has sagged — it hovered at $21.65 midday Monday.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews