A
Gildan, a
In response, the company's board has formed a special committee of independent directors to consider the proposal and contacted other potential bidders.
But
“Since the onset of our campaign, we have maintained that Gildan is a high-quality business with significant latent earnings power and strong value creation potential under the right board and management,"
"We are naturally concerned that the board has initiated a sale process in order to avoid accountability following continuous and growing support for Browning West’s calls for significant board reconstitution."
Tyra's resume included time spent as CEO of clothing company
Gildan's board fired back, criticizing Chamandy's long-term strategy and his fixation on "high-risk and highly dilutive multi-billion-dollar acquisitions that would shift Gildan away from its core area of manufacturing experience."
Shareholders, who want to replace members of Gildan's board in order to reinstate Chamandy, were focused on the company's
"To put this low price in context, if
Gildan declined to comment on
The company's share price rose almost four per cent Wednesday morning to
In a note to clients, he also said there are a limited number of strategic acquirers, including
"We believe that some shareholders may be frustrated by this turn of event and may not support a takeover scenario at this point," he said.
"Some may argue that this quick profit undermines the long-term value of the company and that in the medium-term, upon a strong execution, the share price could surpass near-term takeover price."
He believes the company will see interest from "strategic players in the apparel/retail space given the company’s significant share in the North American wholesale market and its strong vertically integrated supply chain/manufacturing footprint in
Interested parties will also be drawn to Gildan's strong and clean balance sheet, good cash flow generation opportunities for expansion and diversification, he wrote in a note to investors.
This report by The Canadian Press was first published
Companies in this story: (TSX:GIL)
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