Russ Berrie Rejects Buy Offer
By Staff -- Gifts & Decorative Accessories, 6/6/2007 11:39:00 AM
Oakland, NJ — The Russ Berrie and Co. board of directors has rejected an unsolicited offer to buy the company for $18 a share, declaring the non-binding proposal undervalues the gift, plush and baby products vendor. The offer, however, did represent a 1.6 percent premium. Shares of Russ Berrie closed at $17.71 on Tuesday. According to the Associated Press, based on the company's 21.1 million shares outstanding at the end of March, the value of the offer was approximately $380 million.
Before receiving this offer, Russ Berrie had already begun to explore the possible sale of its gift division, and received indications of interest from several prospective acquirers. The company hired Sagent Advisors to explore strategic alternatives, including selling a division, selling the whole company or identifying candidates for potential acquisitions.
Said Anthony DeMasi, an industry consultant who works with the company, “It was inevitable. I’m sure the company will still do fine. The company has a great reputation and a great product line. I’m not worried about it at all.”
Russ Berrie recently named a new chairman of the board, after completing its restructuring efforts in April.
