Cash is an attractive lure.
Most of these dotcoms have POS businesses, but they have much needed cash that can serve as a crude subtitute for a secondary by the acquirer.
biz.yahoo.com
Friday December 29, 12:54 pm Eastern Time
Press Release
SOURCE: GenesisIntermedia.com, Inc.
GenesisIntermedia.com Makes Offer to Acquire Fashionmall.com
LOS ANGELES, Dec. 28 /PRNewswire/ -- GenesisIntermedia.com, Inc. (Nasdaq: GENI - news; Frankfurt: GIA) announced today that it is filing a Schedule 13D with the Securities and Exchange Commission, disclosing that it had acquired, through various open market transactions, a 7% interest in the common stock of Fashionmall.com (Nasdaq: FASH - news).
Furthermore, GENI has sent an offer, in the form of a letter sent to the management and Board of Directors of Fashionmall.com, providing for the acquisition of all of FASH's remaining shares outstanding in a transaction valued at $7 per FASH share, or at a premium of 170% over $2.59375 per share, yesterday's closing price of FASH's common stock. The GENI offer also exceeds by 100% an unsolicited offer disclosed yesterday to Fashionmall.com's management of $3.50 per share. Under the GENI proposal, shareholder of Fashionmall.com would receive for each share of FASH (a) $2 in cash and (b).29 shares of GENI common stock. Yesterday's closing price of GENI's common stock was 17.375 with a market capitalization of $112m. |
