The special committee of the upscale US fashion retailer Nordstrom has rejected a proposal by the firm’s founding family group to purchase all of the outstanding shares of common stock of the company, branding it “inadequate”.
In an announcement yesterday (5 March), Nordstrom said the committee, which was formed in June of last year, has reviewed the proposal by the group – which currently holds about 31% of the company – to purchase all remaining shares at a price of US$50 per share in cash.
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The offer was below yesterday’s closing price of $51.90 per share. The stock fell 2.16% after hours to $50.78.
Following a review of the proposal, the special committee said the price proposed is “inadequate”, and has directed its advisors and management not to provide further due diligence information to the group.
It added unless the group can “promptly and substantially” improve the price it is proposing to pay for the company, the special committee intends to terminate discussions.
Nordstrom booked a 24.9% drop in net income in the fourth quarter as charges in the period took their toll. For the quarter ended 3 February, the firm reported net earnings of US$151m, compared to $201m last year.
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By GlobalDataUS Q4 in brief – Footlocker, Kohl’s, The Children’s Place, Nordstrom
