UPDATE 1-Physicians Formula gets rival buyout proposal

Thu Sep 6, 2012 4:38pm IST

Stocks

   

* Receives new offer at $4.90 per share

* Swander Pace had offered $4.25 per share

* New offer at a premium of 12 pct to Wednesday close

* Co says not yet determined bid as superior

Sept 6 (Reuters) - Cosmetics company Physicians Formula Holdings Inc, which in August agreed to go private with Swander Pace Capital, said it received a rival buyout offer of about $67.2 million from an unnamed party.

The new unsolicited, non-binding offer of $4.90 per share is at a 12 percent premium to Physicians Formula's Wednesday close of $4.37. Swander Pace had agreed to pay Physicians Formula shareholders $4.25 per share in cash.

Physicians Formula, which is evaluating the new proposal, said its board has not yet determined that the bid is superior to Swander Pace's proposal.

Founded in 1937, Physicians Formula sells high-priced cosmetics and skin care products at chains owned by Wal-Mart Stores Inc, Target Corp and Rite Aid Corp .

Shares of Physicians Formula, which has a market capitalization of about $60 million, have risen 19 percent since the Swander Pace deal was announced.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Modi's U.S. Trip

REUTERS SHOWCASE

Shortage of Coal

Shortage of Coal

Coal import rush leads to port congestion  Full Article 

Modi's U.S. Visit

Modi's U.S. Visit

Modi to observe strict fast during maiden trip to U.S.  Full Article 

Mars Mission

Mars Mission

India's Mars mission a step closer to success with engine test  Full Article 

Bumper Sales

Bumper Sales

Apple sells more than 10 mln new iPhones in first three days  Full Article 

Dubai Housing

Dubai Housing

Dubai housing costs soar to Manhattan peaks, forcing moves to outskirts  Full Article 

Whistleblower Award

Whistleblower Award

U.S. SEC to pay $30 million-plus in largest whistleblower award  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage