NEW YORK — Lifestyle specialty retailer Pacific Sunwear of California Inc. rejected an unsolicited buyout offer from extreme sports retailer Adrenalina on Tuesday, saying that it was “not in the best interests of its shareholders.”
The announcement comes a day after the Miami-based company offered to buy its rival for $4.50 a share in a cash and stock deal, valuing the large teen retailer at about $300 million. The bid came after Adrenalina CEO Ilia Lekach made several unsuccessful attempts to contact Pacific Sun’s CEO Sally Frame Kasaks in discussions.
“I’m not surprised at all [about the news],” said Pali Capital retail analyst Amy Noblin, who added that “the purchase price was too low” and that she doubted Adrenalina would “be able to secure the financing.”
PacSun, which operates 937 stores, saw its shares decline 5.3 percent, to $3.60, at the end of trading Tuesday. Shares of Adrenalina, which operates three stores in Florida, dropped 10.3 percent to $1.30.