UK: Mothercare upbeat as Destination Maternity withdraws bids
Mothercare turned down the 300 pence per share offer earlier this month
Mothercare turned down the 300 pence per share offer by the US group earlier this month for not reflecting the inherent value of the company, a decision that was backed by investors Allianz Global Investors and Fidelity Worldwide.
In a response at the weekend, Destination Maternity said it was withdrawing its proposal for a possible combination with Mothercare, adding that it was unwilling to increase the value of its proposal.
In a filing with the London Stock Exchange this morning (28 July), Mothercare said it has had no contact with Destination Maternity since 3 June.
It added: "As announced in the trading update on 17 July, with the appointment of Mark Newton-Jones as chief executive, Mothercare is now fully focused on the company's plan to turnaround the UK business and to continue its strong international growth. The board remains confident in the ongoing execution of Mothercare's strategy as an independent company."
Mothercare officially welcomed Newton-Jones into the fold on 17 July as the group revealed its UK performance was beginning to stabilise.
Since late May, the group's shares have more than doubled. However, Mothercare has struggled to turn its ailing UK business around.
Click here to read just-style's analysis on the group's troubles and analysts' thoughts on its prospects.
Destination Maternity Corporation (DMC) is a specialty designer and retailer of maternity clothing. The company's stores offer tops, bottoms, lingerie, coats, swimwear, active-wear, sportswear and bea...
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