SOROS UPS BLUEFLY STAKE
NEW YORK — Deep-pocketed investor George Soros upped his stake in Bluefly Inc. to 78 percent when the firm’s other shareholders bought less than half of a $20 million transferrable right stock offering.
According to a filing with the Securities and Exchange Commission, companies under Soros’ control spent $10 million for 4.3 million shares of the Internet pureplay, based here.
The move is the final part of a financing deal struck with Soros in November. Shareholders of record as of Feb. 7 were able to buy 1.735 transferrable rights for each share of Bluefly stock owned. Each right entitled shareholders to purchase one share of the company’s stock for $2.34 on March 26.
If shareholders bought less than $20 million in the offering, as was the case, Soros agreed to cover up to $10 million of the balance.
Shares of Bluefly lost 6 cents to close at $1.25 in Nasdaq trading Friday.
As reported, Bluefly, on Feb. 7, converted $20 million of its long-term debt into preferred equity, owned by Soros. The move relieved the firm of all of its long-term debt.