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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (1191)	4/11/2007 2:15:35 AM
From: richardred	Respond to of 7248

PPR Making $7.1B Offer for Puma Tuesday April 10, 12:50 pm ET By Geir Moulson, Associated Press Writer Luxury Goods Maker PPR Buys 27 Pct Stake in Puma, Offers to Buy Rest of Company in $7.1B Deal BERLIN (AP) -- PPR SA, the French luxury goods maker behind the Gucci and Yves Saint Laurent brands, said Tuesday it is buying a 27.1 percent stake in Puma AG and plans to make an offer for the rest in a deal that values the world's third-largest sporting goods maker at $7.1 billion. Herzogenaurach-based Puma welcomed the offer and said management would recommend it to shareholders. PPR said it was paying 1.4 billion euros ($1.9 billion) for the stake in Puma held by the Mayfair investment company. Following that deal, PPR said it plans to launch a "friendly takeover offer" for Puma's remaining shares at the same price of 330 euros ($441.11) per share. It said it expects to complete the offer in early July. Puma's board "unanimously believes that PPR's engagement is in the best interests of the company and that the announced offer price per share ... for the voluntary public takeover offer is fair," Puma said in a statement. Puma shares soared 9.4 percent to close at 343.93 euros ($461.76) -- above PPR's offered price -- in Frankfurt. The shares had risen more than 10 percent on Thursday, the last trading day before the Easter weekend, on talk of a possible bid. PPR shares rose 3.2 percent to close at 133.03 euros ($178.61) in Paris. "We guarantee Puma's continuity as an autonomous company within the PPR Group," PPR Chief Executive Francois-Henri Pinault was quoted as saying in Puma's statement. Puma added that "there will be no changes with regard to staffing." Established in 1948, Puma is one of the world's biggest sporting goods companies after U.S.-based Nike Inc. and Adidas AG, which also is based in Herzogenaurach. It has some 7,800 employees. Puma has been working to expand its reputation as a maker of lifestyle brands -- clothes, shoes and accessories such as eyeglasses -- and expand in more regions and categories. Last year, it launched a joint footwear collection with Alexander McQueen, also part of the PPR group. In 2006, it earned a net profit of 263.2 million euros on sales of 2.37 billion euros. Executives of PPR, which also owns luxury brands Balenciaga and Stella McCartney as well as the Fnac music chain and Conforama furniture chain, described the offer price as "firm and final" during a conference call. Chief Financial Officer Jean-Francois Palus said that "we will not endanger our credit rating with acquisitions." Still, Puma shares' rise above the offered price appeared to raise the possibility that PPR might have to raise its bid -- or that another bidder might enter the fray. Standard & Poor's placed its corporate credit ratings on PPR under review. That "reflects uncertainties regarding the bid's cash impact, which in turn depends on whether all of Puma's existing shareholders pledge their shares, and the final price paid by PPR, which could exceed 5 billion euros," S&P credit analyst Nicolas Baudouin said in a statement. Puma Chief Executive Jochen Zeitz stressed that his company considers PPR "the right partner" when asked during a conference call about the possibility of a rival bid -- which he described as "very hypothetical." He said that "should there be another offer, we'd closely examine it." S&P pointed to the benefits for PPR of buying Puma. "Acquiring Puma would provide PPR with an international brand carrying strong worldwide recognition, as well as diversification into the sportswear industry, which enjoys strong growth prospects," the agency said. A stake of more than 25 percent in a German company gives the holder a blocking minority, ensuring significant influence over decisions. Mayfair manager Rainer Kutzner said that "it was not an easy decision" to sell the stake, but that PPR was an "ideal partner" for Puma and the deal was a rare opportunity. Hamburg-based Mayfair is an asset management company for members of the Herz family, which founded Germany's Tchibo coffee and clothing retailer. Siblings Guenter and Daniele Herz took their stake in Puma, via Mayfair, in May 2005. biz.yahoo.com

To: richardred who wrote (1191)	10/24/2007 12:17:42 AM
From: richardred	Read Replies (2) \| Respond to of 7248

Nike Buys Soccer Apparel Firm for $582M Tuesday October 23, 4:37 pm ET By Sarah Skidmore, Associated Press Writer Nike Buys UK Soccer Supplier Umbro for $582 Million, Broadens Presence in Soccer PORTLAND, Ore. (AP) -- Nike Inc. will buy Britain's Umbro PLC for $582 million as the U.S. apparel and shoe maker seeks a larger presence in the global soccer market ahead of the next World Cup. Nike, through its subsidiary Nike Vapor Ltd., agreed to pay $3.94 in cash for each Umbro share, the companies said Tuesday. Umbro, based in Cheadle, north west England, designs and markets soccer-related apparel, footwear and equipment sold in more than 90 countries. The company reported a net profit of $40.4 million (19.8 million pounds) in 2006. "I think this is a win for these two great brands and for the athletes and fans of the world's biggest game," Mark Parker, Nike's chief executive officer, said during a conference call. Nike has long sought a greater presence in the soccer arena. The Beaverton, Ore. company's soccer brand has performed well, growing revenues from about $40 million in the 1990s to approximately $1.5 billion today. But it faces stiff competition in the world soccer market, largely from European companies such as Adidas. Nike has said it wants to be the sport's top brand by the next World Cup in 2010. It has gobbled up deals with key international teams and has an endorsement contract with world soccer star Ronaldinho from Brazil. Nike recently made an aggressive bid to replace Adidas as outfitter for the German Soccer Federation. German soccer authorities rejected a $680 million offer from Nike and opted to extend its significantly lower-priced contract with Adidas, which is based in Germany. But Umbro and its 45 international licensees supply uniforms to the national teams of England, Ireland, Sweden and Norway, six English Premier League teams and more than 100 other professional teams globally. The company also has a key contract as the exclusive supplier for the English Football Association, the governing body for English soccer. The FA backed the Nike-Umbro deal. "The FA has enjoyed an excellent partnership with Umbro for more than 20 years. We are delighted that the proposed acquisition will allow us to continue our strong historical relationship with Umbro while benefiting from the marketing expertise and financial strength of Nike," said Brian Barwick, the FA's chief executive officer. The addition of Umbro, with its strong brand and overseas presence, is expected to further grow Nike's profile and performance in one of the world's largest sports. This is of particular importance in the United Kingdom, a top soccer market where Nike has struggled in past years. It also helps the company's business in emerging markets such as Russia, Latin America and parts of Eastern Europe, where soccer is the top sport. Nike said it intends to operate Umbro as an independent, U.K.-based subsidiary, joining the ranks of other Nike-owned companies such as Cole Haan, Converse and Hurley International. Parker said Nike said there is "tremendous untapped opportunity" in Umbro, both in its product segments and markets. The company has had success building small acquisition companies in the past. And company officials said the structure of the soccer market is similar to its segmentation in basketball, where it offers customers Nike brand, Jordan and Converse products. "It's similar to the Converse brand, where Nike had a great basketball brand but there was room in their portfolio," said Sara Hasan, an analyst at McAdams Wright Ragen. The deal is expected to close in the spring. JJB Sports and Sports Direct, two large sporting goods retailers in the United Kingdom, own 10.2 percent and 15 percent of Umbro respectively. This raises the possibility of a counterbid by Sports Direct, but analysts say it remains unlikely because it could damage the retailers' business with Nike. Nike shares rose 95 cents, or 1.50 percent, to $64.12 in Tuesday trading. Associated Press Writer Robert Barr contributed to this report from London. Umbro, umbroplc.com Nike, nike.com biz.yahoo.com