LOS ANGELES — Mossimo Inc. said Monday that it agreed to delay the tender offer that would allow company founder Mossimo Giannulli to acquire all the outstanding shares he doesn’t already own.
Mossimo, based in Santa Monica, Calif., said in a statement that the change was made to allow Giannulli and a special committee of the company’s board to consider an unsolicited bid from an unidentified third party interested “in pursuing a business combination with the company.”
That deal could have resulted in Mossimo shareholders’ receiving a premium to the $5 offer that Giannulli, chairman and co-chief executive officer, had made in the existing merger agreement. But Mossimo said Giannulli concluded that the proposal was “unlikely to lead to a transaction that he would be willing to accept.”
Mossimo said the deadline for beginning the offer will be moved to Nov. 14 from Oct. 31 and that the deadline for completing it will be changed to Feb. 14 from Jan. 31. The company said it expects to close the deal by yearend.
Edwin Lewis, Mossimo’s president and co-ceo, didn’t return calls and Giannulli couldn’t be reached for comment.
Giannulli owns about 65 percent of the company he founded in 1987. He made an offer on April 11 to acquire the remaining shares for $4 each. On Aug. 16, Giannulli withdrew that bid. The company and Giannulli said on Sept. 22 they reached an agreement for the outstanding publicly held minority shares of Mossimo at $5 a share.
On Monday, shares of Mossimo closed on the Nasdaq Stock Market at $5.03, which was 3 cents above its Friday closing and the $5 offer price.
The focus of investors has been the Modern Amusement brand, a men’s sportswear company that Mossimo purchased in 2004. While the core Mossimo brand is available only at Target Stores through a licensing arrangement, the Modern Amusement brand has higher price points and is sold in specialty stores.
The founder of Modern Amusement, Jeff Yokoyama, left the label after Mossimo’s acquisition. Yokoyama currently heads his own casualwear label called Generic Youth and also serves as design director at lifestyle company Paul Frank Industries.