The Wall Street Journal-20080128-Kellwood Co-- Board Sends Sun Capital Bid To Shareholders for Decision

Return to: The_Wall_Street_Journal-20080128

Kellwood Co.: Board Sends Sun Capital Bid To Shareholders for Decision

Full Text (101  words)

Kellwood Co., the St. Louis-based apparel maker, agreed to drop all defenses against Sun Capital Securities Group's hostile takeover offer, which valued the company at $542 million. Kellwood said its board didn't take a position on the $21-per-share offer but decided to allow shareholders to decide whether to accept it. The offer represents a 23% premium over the company's share price Friday of $17.10. Kellwood and Sun Capital couldn't be reached for comment. If a majority of shareholders accept the offer, the deal could be completed Feb. 12. Kellwood reserves the right to entertain offers from third parties until that date.