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Authentic Brands Group Inc. is considering launching a rival takeover bid for American clothing company Guess? Inc., people familiar with the matter said.
New York-based Authentic Brands is working on a potential offer that would counter the $13-a-share cash proposal that Guess received in March from WHP Global, according to the people.
Shares of Guess surged as much as 26 percent on Thursday. The stock was up 17 percent at $11.635 at 3:27 p.m. in New York, giving the company a market value of about $603 million.
Deliberations are ongoing and no final decisions have been made, the people said, asking not to be identified discussing confidential information. A representative for Authentic Brands declined to comment. A spokesperson for Guess couldn’t immediately be reached for comment.
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Guess said in a statement last month that it had formed a special committee of independent and disinterested directors to evaluate WHP Global’s offer, which would see some existing shareholders, including founders Paul Marciano and Maurice Marciano, roll over their stakes. Solomon Partners and Willkie Farr & Gallagher are advising the special committee.
Founded in 1981 by the Mariano brothers, Guess’ products include denim, handbags and shoes. In February, the company teamed up with WHP Global to acquire the fashion brand rag & bone.
Authentic Brands is led by chief executive officer Jamie Salter. Its stable of brands and intellectual properties includes Champion, Reebok and Forever 21. Bloomberg News reported earlier this year that an investor group including CVC Capital Partners, General Atlantic, HPS Investment Partners and Leonard Green & Partners is in talks to buy BlackRock Inc.’s stake in Authentic Brands.
By Vinicy Chan, Crystal Tse and Eliza Ronalds-Hannon
Learn more:
Apparel Retailer Guess Gets Take-Private Offer From WHP Global
Guess, whose shares jumped over 30 percent in early trading on Monday, has formed a special committee to evaluate the proposal, though the deal isn’t guaranteed.
