Is Authentic mulling a Guess takeover bid?
Guess store in Munich, Germany. Credits: Guess Media speculation over Authentic Brands Group potentially launching a bid for Guess Inc. began circulating yesterday, helping to boost shares for the US clothing brand and sparking a possible bidding war. Following Bloomberg’s report on the potential of a rival bid by Authentic, Guess shares were up 17 percent in afternoon trading on Thursday, possibly reflecting shareholder support for a takeover. According to Bloomberg, Authentic, the parent company of Ted Baker, Reebok and Eddie Bauer, is understood to be working on an offer to counter the 13 dollar-a-share cash proposal Guess received from WHP Global. Deliberations are ongoing, the media outlet said, with no decisions currently made. WHP outlined a non-binding acquisition proposal for Guess last month, prompting the formation of a special committee by the brand to review the offer. The offer excludes the shares currently held by three Guess executives, including co-founder Maurice Marciano, a filing said at the time. A deal between the duo initially seemed likely due to their existing business relationship, first established when the two companies jointly acquired the fashion brand Rag & Bone. The joint venture included the intellectual property rights of the New York label, with Guess then taking over its operations and US and UK store management. Authentic’s potential bid, however, is also not exactly out of left field. The company, led by CEO Jamie Salter, has been known to follow an acquisition-heavy business model, through which it partners with global licensees to help in expanding a brand’s presence internationally. Its focus has previously been on compiling a portfolio of legacy fashion brands, with the likes of Forever 21, Champion, David Beckham and Juicy Couture all under its wing. FashionUnited has contacted Authentic Brands Group and Guess with requests to comment.
Media speculation over Authentic Brands Group potentially launching a bid for Guess Inc. began circulating yesterday, helping to boost shares for the US clothing brand and sparking a possible bidding war. Following Bloomberg’s report on the potential of a rival bid by Authentic, Guess shares were up 17 percent in afternoon trading on Thursday, possibly reflecting shareholder support for a takeover.
According to Bloomberg, Authentic, the parent company of Ted Baker, Reebok and Eddie Bauer, is understood to be working on an offer to counter the 13 dollar-a-share cash proposal Guess received from WHP Global. Deliberations are ongoing, the media outlet said, with no decisions currently made.
WHP outlined a non-binding acquisition proposal for Guess last month, prompting the formation of a special committee by the brand to review the offer. The offer excludes the shares currently held by three Guess executives, including co-founder Maurice Marciano, a filing said at the time.
A deal between the duo initially seemed likely due to their existing business relationship, first established when the two companies jointly acquired the fashion brand Rag & Bone. The joint venture included the intellectual property rights of the New York label, with Guess then taking over its operations and US and UK store management.
Authentic’s potential bid, however, is also not exactly out of left field. The company, led by CEO Jamie Salter, has been known to follow an acquisition-heavy business model, through which it partners with global licensees to help in expanding a brand’s presence internationally. Its focus has previously been on compiling a portfolio of legacy fashion brands, with the likes of Forever 21, Champion, David Beckham and Juicy Couture all under its wing.
FashionUnited has contacted Authentic Brands Group and Guess with requests to comment.
