Kenneth Cole Looks for a Cheap Deal From Shareholders (Update 1)
Updated to include added analyst comments, M&A details and updated share prices.
NEW YORK (TheStreet) - It's not just Kenneth Cole shoppers that may be in a post-holiday bargain hunting mood.
Clothing designer Kenneth D. Cole may be looking to buy his namesake fashion company at an opportunistic price from existing shareholders with a $15 a share bid for Kenneth Cole Productions (KCP) on Friday.
Citing profitability and competitive challenges, Cole is offering to buy the company at a valuation of $280 million -- or roughly a 26% premium to the company's average stock price in the last 45 days -- but below a post-crisis September 2010 share price high of $16.50.The move comes at a time when mass-fashion mainstays like Kenneth Cole and Liz Claiborne (LIZ) struggle with post-crisis profitability and insurgents like Michael Kors (KORS), Lululemon (LULU) and DSW (DSW) report strong earnings.
|Kenneth Cole is looking to buy KCP for $15 a share.|
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