In Pier 1's response to Cost Plus' rejection of the buyout offer, Pier 1 CEO Alex Smith said:
In addition, as originally outlined, our proposal is subject to only limited conditions that are customary for transactions of this type, which are confirmatory due diligence, the negotiation of a definitive acquisition agreement and the receipt of all necessary shareholder and regulatory approvals. Nevertheless, we intend to work directly with the shareholders of Cost Plus to make this transaction a reality.
It's that last sentence that implies a hostile bid is a real possibility.
On Monday, Cost Plus' board called the unsolicited $4 a share buyout offer distracting -- and a hostile bid would likely be even more so. Cost Plus' shares are trading at around $3.50 per share.
J.P. Morgan Chase & Co. is acting as financial adviser to Pier 1, and Gibson, Dunn & Crutcher LLP and Bracewell & Giuliani LLP are acting as legal counsel. - Maria Woehr
See Dealscape's Cost Plus rejects Pier 1 offer
See The Deal's Pier 1 pursues Cost Plus
See Dealscape's Pier 1 adds Cost Plus, but deal equals trouble
Will home furnishings retailer Pier 1 Imports Inc. go hostile with its unsolicited $88 million bid for rival Cost Plus Inc.? If you read between the lines, it seems likely. 
