Pier 1 Imports drops bid for Cost Plus

By Lisa Kerner

Charlotte, N.C., June 24 - Pier 1 Imports, Inc. withdrew its proposal to acquire all the outstanding shares of Cost Plus, Inc., saying it was unlikely Pier 1 would be able to acquire a majority interest "at a price that would make sense" for its shareholders.

The company assured shareholders that Pier 1's turnaround is on track and said it would continue to "evaluate future opportunities that create compelling, long-term value," according to a company news release.

As previously reported, Cost Plus rejected the Fort Worth, Texas, specialty retailer's unsolicited stock-for-stock merger proposal.

In a June 6 letter to Cost Plus, Pier 1 said it would issue 0.6 shares of its common stock for each share of Cost Plus common stock, valued at about $4 per share based on the closing prices of Pier 1 and Cost Plus on June 6.

Cost Plus is a specialty retailer located in Oakland, Calif.

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