UPDATE 1-PacSun rejects smaller rival Adrenalina’s buyout offer
October 22nd, 2008 | by admin |(Recasts; adds background, share movement)
Oct 21 (Reuters) - Pacific Sunwear of California Inc(PSUN.O: Quote, Profile, Research, Stock Buzz) on Tuesday said it rejected an unsolicited buyoutoffer from athletic-clothing retailer Adrenalina (AENA.OB: Quote, Profile, Research, Stock Buzz),saying the proposal was not in the best interests of itsshareholders.
The decision comes a day after Adrenalina made an offer tobuy larger rival PacSun for $4.50 a share in a cash and stockdeal, valuing the struggling teen retailer at about $295million.
PacSun, a surfing-inspired apparel chain with more than1,000 stores, had earlier thwarted several attempts by thesmaller rival to coax PacSun Chief Executive Sally Frame Kasaksto enter into discussions.
Adrenalina, which had sales of $2.3 million in the sixmonths ended June 30, operates about three stores in Florida.
PacSun shares were down 6 cents at $3.74 in afternoontrading on Nasdaq. (Reporting by Dhanya Skariachan in Bangalore; Editing by VinuPilakkott)
