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Wednesday, July 2, 2014

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

U.S. mother and baby product retailer Destination Maternity has not abandoned its pursuit of struggling British peer Mothercare after revealing on Wednesday it had two bid proposals rejected.Shares in Mothercare were up 11 percent at 259.1 pence at 0914 GMT after Destination Maternity said Mothercare's board had spurned an increased offer proposal of 300 pence a share that valued the 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."We are seeking to engage with the board of Mothercare on a constructive basis with the goal of completing a recommended transaction," said Destination Maternity Chief Executive Ed Krell.

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.