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Wednesday, July 2, 2014

Destination Maternity keen to purchase UK's Mothercare, (NASDAQ: DEST)

U.S. baby product retailer Destination Maternity will continue its pursuit of Britain's Mothercare after revealing on Wednesday it had two bid proposals rejected.Mothercare confirmed it had spurned an increased offer proposal from Destination Maternity of 300 pence a share that valued the UK company at 266 million pounds ($453 million).That proposal on June 1 implied a premium of 29 percent to Mothercare's closing share price on Tuesday of 232.5 pence. Mothercare shares were up 11 percent at 259 pence by 1100 GMT.Destination Maternity CEO Ed Krell said: "We are seeking to engage with the board of Mothercare on a constructive basis with the goal of completing a recommended transaction." He said there was a compelling rationale for a combination of the two companies.

Destination Maternity Corporation is the designer and retailer of maternity apparel in the United States and is the only nationwide chain of maternity apparel specialty stores. Shares of DEST traded higher by 1.32% or $0.3/share to $23.07. In the past year, the shares have traded as low as $22.00 and as high as $32.98. On average, 87964 shares of DEST exchange hands on a given day and today's volume is recorded at 121604.