ITALY: Benetton family makes EUR276.6m takeover bid
Edizione Srl, the investment firm controlled by the Benetton family, has made a EUR276.6m (US$364.4m) bid to buy all the shares it doesn't already own in Benetton Group SpA and delist the clothing company.
The offer of EUR4.6 (US$6) per share, is 15.6% higher than Tuesday's closing price on the Italian exchange.
Edizione, which already owns a 67.08% stake in Benetton, said in a statement that it believes a delisting would provide Benetton's management with the "flexibility required in the medium to long term to implement the actions necessary to meet the challenges brought about by the changed competitive environment."
It added: "Changing consumption patterns in the markets of the Benetton Group and the pressure on margins resulting from the rising cost of raw materials require a strategy to strengthen the business model on which the history and success of Benetton Group is based.
Earlier this week Benetton issued a full-year profit warning, saying it expects net income to be down by more than 30% on the previous year at EUR70m. It blamed the decline on pressure on margins due to increasing raw material prices. Revenue is seen in-line with last year's at EUR2bn.
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