Even though the two retailers are struggling, Cost Plus Inc.'s board
rejected Pier 1 Imports Inc.'s buyout offer. Pier 1, the retailer best known for its wicker furniture,
proposed to acquire rival Cost Plus -- think Pier 1 meets Trader Joe's -- in an all-stock transaction valued at about $4 per share, or $88 million. -
Maria Woehr
Chairman of the Board of Directors Fredric M. Roberts wrote:
Your proposal to combine our
operations is not attractive from either a financial or a strategic
perspective. It is both distracting and ill-timed given the difficult
retail environment and the progress we have made investing in and
improving our business. We believe that our shareholders want us to
remain focused on our business and provide superior operational
execution.
In the past six months Pier 1's stock has increased by about 65%, while Cost Plus' declined by about 13%.
Pier 1's move comes almost exactly two years after it announced a strategic review of alternatives, including a sale of assets in the wake of disappointing earnings. - Maria Woehr
See The Deal's: Pier 1 pursues Cost Plus
See Dealscape's Pier 1 adds Cost Plus, but deal equals trouble
