GENI weighs in with an offer of $7 per share. This looks like a real deal. Cash out time for the insiders.
www2.marketwatch.com
Friday, December 29, 2000
GENI discloses bid for FASH
--1:10 pm - By Michael Baron
Genesisintermedia (GENI: news, msgs) has swooped in with an offer to acquire
Fashionmall.com (FASH: news, msgs), confirming earlier reports (see 12:55
item). The Los Angeles marketing firm disclosed in a filing with the Securities
and Exchange Commission that it has acquired a 7 percent stake in
Fashionmall.com and that it has sent a letter to the company offering to acquire
its outstanding shares for $7 each, which represents a 170 percent premium over
the closing price in FASH Thursday. The bid would swap $2 in cash and .29
shares of GENI common stock for each FASH share. Genesisintermedia, which
plans to combine Fashionmall.com with its Centerlinq unit, noted that its offer far
exceeds the unsolicited offer Fashionmall.com received Thursday from Narax.
Speaking to CBS MarketWatch just prior to reports of the rival GENI bid, FASH
CEO Ben Narasin said he has been unable to produce any information about
Narax. "We searched all over the Internet, through Hoover's etc., and checked
the Bloomberg and Bridge databases and haven't been able to come up with a
single reference to Narax," Narasin said. The Narax press release lists Michael
Savage as a contact for the company. Narasin said he spoke to Savage late
Thursday and was assured that Narax was indeed real. "He (Savage) also said
he would send me information about the company via e-mail," said Narasin. "I
haven't seen anything yet - and there's been plenty of time for it to arrive - so
obviously, we remain extremely skeptical." GENI shares are off 6 cents, or 0.4
percent, to $17.31, while FASH remains halted at $3.38, up more than 30
percent. |
