GERMANY: PPR buy a 27% share in the sportswear company Puma, no acceptance threshold for sale

Record ID: 566565

  • Title: GERMANY: PPR buy a 27% share in the sportswear company Puma, no acceptance threshold for sale
  • Date: 12th April 2007
  • Summary: PUMA BELT
  • Embargoed: 27th April 2007 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: Industry
  • Reuters ID: LVA79M9P0ML8UFSPXW3142AV7LML
  • Story Text: French retailer PPR has not set a minimum acceptance threshold for its public offer to take over German sportswear group Puma , PPR's chief executive told reporters at a news conference on Thursday (April 12).
    "He will not react. His bid is very good. The current share price is based on speculation and has nothing to do with the thorough analysis of the company and its future. He determined the price with a very strong investor. They agreed on 330 euros after tough negotiations which lasted day and night. He decided to offer the shareholders this price as there is now a chance that the bid will be accepted. However, this is the final price and it will not change." Cois henri-Pinault said.
    PPR has already agreed to buy 27 percent of Puma from German billionaires Guenter and Daniela Herz.
    "It is a decision which each shareholder has to make themselves. We had the price assessed and got a preliminary verbal valuation. As a result of this we decided that 330 euros was a fair price. Mr Pinault repeated that this was his final offer. There is currently nothing else to say about it. Everyone must make their own decision" Puma executive Jochen Zeist told reporters.
    French luxury-goods and retail group PPR has said the acquisition would speed its sales growth and improve profitability and earnings per share. It expects to complete a five-week public tender for Puma shares in early July.
    Puma chief executive Johan Zeist ended the press conference by saying: "The strategy remains the same but on the other hand we will be able to use PPR's strategy to expand our Know How in retail on an international scale as well as in E-commerce and especially concerning the fashionable lines in our collection."
    Puma shares traded down 2 percent at 342.80 euros by 0958 GMT, remaining above the offer price.
    The German company has called PPR "the perfect partner" and said it would recommend the offer to its shareholders.
    Puma Chief Executive Jochen Zeitz, whose contract runs until 2009, said he will remain in his post as long as he is wanted.
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