PacSun rejects Adrenalina's $5-per-share offer

By Lisa Kerner

Charlotte, N.C., Oct. 29 - Adrenalina upped its offer to $5.00 per share, or a total of approximately $329 million, in its bid to acquire Pacific Sunwear of California Inc.

PacSun's board, however, quickly rejected the offer.

In a statement released Wednesday afternoon, PacSun said it is committed to executing on its strategic plan to create long-term shareholder value.

PacSun's board of directors previously rejected Adrenalina's $4.50-per-share offer for the company.

The latest offer represented a 67% premium to PacSun's closing price on Tuesday, according to an Adrenalina news release.

Adrenalina conditioned the new offer on approval by PacSun's board and shareholders, the execution of a definitive agreement and financing.

In making the new offer, Ilia Lekach, Adrenalina chairman and chief executive officer, had called on PacSun's board to act in its shareholders' best interests by engaging in discussions with Adrenalina to implement the latest proposal.

According to Lekach, PacSun's share price has decline 20% since Oct. 17, the day prior to his company's first offer.

PacSun is an Anaheim, Calif.-based specialty retailer of action-sport-inspired casual apparel, accessories and footwear for teens and young adults.

Miami-based Adrenalina sells athletic apparel, equipment and accessories.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.