USA: Duck Head Apparel Makes Financial Adjustments
The company further announced that it intends to institute a share repurchase program for up to $3m of its outstanding shares. The timing and form of the share repurchase programme will be determined by the board after consultation with its advisors.
Finally, the company announced that it intends to amend its shareholders rights plan to provide that the rights will expire on March 31, 2001.
Bob Rockey, chairman and CEO, said: "We believe that the current stock price does not reflect the company's underlying value and have determined to take these steps in order to pursue our goal of maximising value for our shareholders. Retaining an investment banking firm with significant experience in our industry will be an important step in determining what strategic alternatives may be available to realise increased value for our shareholders.
"Implementing a share repurchase at current share prices is a good investment and may provide some liquidity for shareholders. Finally, the decision to terminate the rights plan by March 31, 2000 will continue to provide protection from attempts to acquire control of the company at unfair prices for the period of time that the company believes will be needed by the board to explore strategic alternatives. Of course, the board has the ability to redeem the rights sooner if doing so will, in its judgment, enhance shareholder value."
About Duck Head Apparel
Duck Head Apparel, which was spun-off as a separate public reporting company on June 30, 2000 by Delta Woodside Industries, manufactures and sells men's and boys' apparel under the Duck Head brand. The company, which employs about 500 people, operates a distribution centre in Winder, GA, a garment assembly plant in Costa Rica, and 26 retail outlet stores primarily in the southeastern United States.
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