Charlotte Russe Board Rejects Takeover Bid

Charlotte Russe Board Rejects Takeover Bid
November 20, 2008

San Diego-based women's apparel retailer Charlotte Russe Holding Inc.'s board recently opposed a nearly $200 million takeover offer by two investment firms, and said it is not interested in talking with the bidders, according to an Associated Press report. KarpReilly Capital Partners LP and H.I.G. Capital LLC made their unsolicited bids on Nov. 12. They valued the offer at $9 to $9.50 per share, or $188.1 million to $198.6 million, a premium of 31 percent to 38 percent over Charlotte Russe's closing stock price the day before. In a letter to heads of the investment firms, Charlotte Russe Chairwoman Jennifer Salopek said the firms' statements this week about possibly proposing an even lower price than their original offer "make it clear to the board that it is not in the best interest of shareholders to enter into discussions with [the investment firms]." Charlotte Russe operates about 487 stores.

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