Blog: Leonie BarrieA Just deal?

Leonie Barrie | 23 July 2008

Australian clothing retailer Just Group has issued a cool response to the higher takeover bid tabled today by hostile investor Solomon Lew.

It says the new deal – which offers AUD814m (US$777m) plus additional incentives if Lew’s Premier Investments achieves 90% control of the firm – does not improve the core offer and adds conditions that cast doubt on any additional payout.

But Premier is this time putting pressure on investors, and wants 50% of Just shares within the last week of the offer period. Otherwise it won’t extend its offer beyond 15 August, it says. This will, at least, put pressure on the Just board to think about it seriously.

One sticking point could be that Just shareholders don’t actually want shares in Premier. Up to now, just 1.1% have accepted the original bid in the two months since it was made.

Just Group has previously said the offer undervalues the company, and has again advised shareholders to take no action. But perhaps more significant is what it hasn’t done – and that is reject the deal.

AUSTRALIA: Premier makes final offer for Just Group


BLOG

Why digital supply chains are top of mind

Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....

BLOG

Navigating global political frictions and economic uncertainty

As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...

BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

just-style homepage



Forgot your password?