Pier 1 To Appeal to Shareholders
June 17th 2008 19:06
FURNITURE Today seems to have scooped everyone with the story this morning that Pier 1 intends to go ahead with its attempted offer for all of Cost Plus by appealing directly to Cost Plus' shareholders. Says president and CEO, Alex Smith
“Our strategic stock-for-stock proposal is extremely compelling, and we believe that it would create significant value for the stakeholders of both companies,” Smith said. He added that the Cost Plus board and management “have made no effort to discuss with us the potential and benefits of a mutually acceptable transaction…. Nevertheless, we intend to work directly with the shareholders of Cost Plus to make this transaction a reality.”<p>[...]<P>By virtue of Pier 1 Imports’ stock-for-stock transaction proposal, Cost Plus shareholders would have the opportunity to participate in the significant potential upside of the combined company.
That's a shot across the bow. Pier 1 stock is up 64.7% in the last six months, prior to the offer, while Cost Plus is down 13.1%. Today Pier 1 stock is up $.09 or 1.51% and Cost Plus stock is up $.09 or 2.6%.
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