To: Justa Werkenstiff who wrote (2381 ) 12/9/1998 6:11:00 AM From: Justa Werkenstiff Respond to of 15132
Follow-up to a stock noted as undervalued on this thread: St. John Knits Chairman Offers $490 Mln for Company Irvine, California, Dec. 8 (Bloomberg) -- St. John Knits Inc., a maker of women's high-end clothing and accessories, said company founder and Chairman Robert Gray and his family have offered to buy the company for about $490 million and refocus the business. The $28-a-share offer represents a premium of about 28 percent over the stock's closing price today of 21 15/16. The offer is for the shares outstanding that Gray and his family don't already own. Gray, who also is chief executive, said in a statement that he wants to slow the Irvine, California-based company's growth rate to 10 percent a year from 25 percent. The company's labels include ''St. John,'' ''Griffith & Gray'' and ''Marie Gray.'' ''I have concluded that rather than pushing for top-line growth at our historic growth rate ... it is in the company's best long-term interest to slow the growth rate down,'' Gray said in the statement. Gray, his wife, Marie, and their daughter, Kelly, control about 1.21 million shares, or about 7 percent of the 16.58 million shares outstanding, not including options they have on about 560,000 shares, a company spokesman said. Gray, 72, has told the company that he has received an equity commitment from Vestar Capital Partners, a private equity investment firm with offices in New York and Denver. Gray and Vestar are working with Chase Manhattan Bank for the balance of the financing. In September, the company fired the chief executive of its money-losing, four-store Amen Wardy home-furnishings chain. Institutional investors had viewed the chain as being too far afield from St. John's clothing and investment business. And for the past two fiscal quarters, the company has warned about lower-than-expected earnings from its 16 retail boutiques and nine outlet stores. The brightly colored fashions are also found in upscale retailers such as Saks Fifth Avenue and Nordstrom.