(Reuters) - Laura Ashley Holdings Plc has dismissed an unsolicited takeover offer from investment firm Flacks Group, saying it would significantly undervalue the British fashion retailer.
Flacks said on Monday it was in the preliminary stages of evaluating a possible deal to buy Laura Ashley, which would be would be limited to 2.748 pence in cash for each Laura Ashley share. The offer would value the takeover target at about 20 million pounds ($26.49 million).
“We strongly believe that the offer fails to reflect the value of the Laura Ashley brand and hence the fair value that shareholders deserve for their investment in the group,” the company said.
“Opportunistic and unsolicited offers that are speculative in nature, and playing to a short-term market that creates unnecessary volatility to the share price, are not welcome,” Andrew Khoo, Chairman of Laura Ashley said in a statement.
Reporting by Justin George Varghese in Bengaluru; editing by David Evans