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Adrenalina raised its bid from $4.50 to $5.00 for PacSun today. The move was quickly rejected by PacSun.
Here are the releases:
Adrenalina Raises Offer for Pacific Sunwear to $5.00 Per Share
MIAMI--(BUSINESS WIRE)--Adrenalina (OTCBB: AENA - News), a retail entertainment destination designed for extreme sports enthusiasts, today announced that it has resubmitted its proposal to the Board of Directors of Pacific Sunwear of California Inc. (Nasdaq: PSUN; "PacSun") to enter into negotiations aimed at acquiring that company at an increased price of $5.00 per share, or an aggregate of approximately $329 million, in a combination of cash and stock.
Adrenalina's increased acquisition offer represents a premium of 67% above the closing price of PacSun common shares on October 28, 2008. The proposed purchase price per share is tiny_mce_marker.50 or 11% higher than Adrenalina's original offer of $4.50 per share announced on October 20, 2008. The offer is subject to PacSun's Board and shareholders approval, execution of a definitive agreement, obtaining the requisite financing and certain other terms and conditions.
Adrenalina noted that it has identified strategic partners, wealthy individuals and institutional investors who have expressed a strong interest as well as commitments in providing the requisite financial support to finalize the transaction.
"I call on the PacSun Board of Directors to act in the best interests of their shareholders by engaging in discussions with Adrenalina to implement our proposal. We believe their Board acted hastily and without full consideration in rejecting our earlier offer. Instead of enhancing shareholder value, PacSun's share price has declined 20% since October 17, the day prior to our original offer, which represents a loss of more than $45 million in market value. We urge the Board now to take this opportunity to execute its fiduciary duty," said Ilia Lekach, Chairman and CEO of Adrenalina.
"Our first offer was received well by those who want to participate in the acquisition," continued Mr. Lekach. "We remain excited about the potential to create value by reinvigorating the PacSun brand through a combination of Adrenalina's innovative lifestyle retailing concepts with PacSun's established brand and extensive store footprint."
The full text of Adrenalina's letter to the PacSun CEO and Board of Directors is attached.
Pacific Sunwear's response:
Pacific Sunwear of California Rejects Adrenalina's Unsolicited Revised Proposal
Wednesday October 29, 1:48 pm ET
ANAHEIM, Calif., Oct. 29, 2008 (GLOBE NEWSWIRE) -- Pacific Sunwear of California, Inc. (NasdaqGS:PSUN - News) announced today that its board of directors has determined that the unsolicited revised proposal received from Adrenalina (OTC BB:AENA.OB - News), a retail-entertainment company currently operating three stores in Florida, to purchase all of the issued and outstanding shares of common stock of Pacific Sunwear is not in the best interests of the Company's shareholders. The Company's management, with the full support of the board, is committed to executing on their strategic plan to create long-term shareholder value.