Water Island Capital revealed it has a 5.5 percent stake in the company and is not convinced in the viability of the merger.
A stumbling block for Randa has always been the perception that inbound apparel licensees would not approve a change to an accessories licensor.
Randa is in talks with Perry Ellis over its nonbinding offer of $28.90 a share.
This was in response to Randa’s latest volley in its attempt to acquire the company.
The accessories firm is sending another letter to the Perry Ellis Special Committee Monday morning on why it has the better offer.
The responsibility to shareholders involves a common sense approach to balancing price and the ability to close the deal.
The special committee for the company continues to support George Feldenkreis in his deal to take the brand private.
The Perry Ellis special committee said a $444 million offer from Randa was “highly conditional, nonbinding and insufficient in terms of value and certainty.”