USA: Converse Gets $30m Offer

A newly formed investment group, Amasia Capital, LLC, has delivered a formal 'expression of interest' to acquire a controlling interest in sneaker and apparel manufacturer Converse Inc (OTC Symbol: CVEO - news). Amasia, which is represented by the investment banking firm of Universal Credit Corp (UCC), wrote to Converse management on Wednesday, August 30, 2000, offering $30m for a 'controlling interest' in Converse. Leon Black's Apollo Investment Fund, which owns a controlling interest in Converse, was also sent a copy of the letter. Amasia Capital, LLC is backed by a leading national brand management and licensing group. Brands owned and managed by Amasia Capital's affiliates generate in excess of $3.5bn of sales at retail. Amasia believes its offer is far superior to any existing offer made to Converse's shareholders and creditors. According to the letter sent to Converse and Apollo, Amasia said it would provide $30m to be used, among other things, for working capital for Converse. UCC is best known for its recent engineering of the leveraged buyout of Bill Blass Ltd and the innovative AAA bond financing for US performing rights Society SESAC.