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 firm at 266 million pounds ($453 million) - the latest example of a U.S. company seeking to purchase a foreign firm in part to take advantage of lower corporate tax rates abroad.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 10 percent at 255 pence by 1430 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 firms.
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 2.08% or $0.48/share to $23.55. 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 26896.
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