The market is apparently expecting a bidding war to break out in the quest to acquire Perry Ellis International.
Shortly after Randa Accessories raised its offer to acquire the firm for $28.90 a share on Friday morning, shares jumped nearly 5 percent and were trading on the Nasdaq above the offer price, or more than $29.10.
Early Friday, the special committee of the Perry Ellis’ board of directors said it received a “revised, non-binding, unsolicited proposal” from Randa that is nearly $1 higher than its original $28 offer.
As a result, the committee said it would “commence discussions with, and grant due diligence access to, Randa” and “evaluate the proposal.” It told shareholders that they need not take any action at this time and there was “no assurance” the discussions would lead to a transaction with Randa.
As reported, on June 16, the Perry Ellis board unanimously approved a $437 million transaction — or $27.50 a share — to become a private company through an acquisition led by George Feldenkreis.
Randa submitted its offer on July 2 and the committee determined that the slightly higher offer was not deemed in the best interest of the shareholders and declined to engage in discussions with Randa.
Randa executives could not immediately be reached for comment Friday about the increased offer, but they have said repeatedly that acquiring Perry Ellis would allow the company to add to its core accessories business and move into adjacent classifications such as apparel. Feldenkreis also could not be reached to see if he is prepared to raise his offer in light of the higher Randa bid.