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Parlux Fragrances


said a group that includes its chief executive is offering to buy the company for $29 a share, a premium of nearly 55% above its closing price Tuesday, and take it private.

The proposal has been sent to the board of Parlux and would cover all of the company's shares other than those owned by Chairman and CEO Ilia Lekach, IZJD Corp. and Pacific Investment Group.

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Shares of Parlux, of Fort Lauderdale, Fla., vaulted higher after the offer became known. Parlux ended regular trading at $18.74 but surged $7.65, or 41%, to $26.39 after hours.

Parlux holds licenses for the Paris Hilton line of fragrances, cosmetics and accessories. The company also has licenses to make and distribute the designer fragrance brands of Perry Ellis, Guess?, Ocean Pacific and others.

The holders of stock options, other than Lekach, would receive the difference between $29 and the exercise price of the options. Lekach said in a press release that he's making the buyout bid to eliminate the costs the company has to incur because it's publicly traded and to get away from short-sellers.