Accent Group has formally rejected a takeover proposal from Frasers Group, labeling the bid as opportunistic and materially inadequate.
The Australian footwear retailer's board dismissed the offer of 65 cents per share, which was put forward last week by the British conglomerate led by billionaire Mike Ashley.
9% stake in Accent, sought to acquire the remaining shares it does not own, but the board's rejection signals a firm stance against the current valuation.
Frasers Group, which already holds a 22.9% stake in Accent, sought to acquire the remaining shares it does not own, but the board's rejection signals a firm stance against the current valuation.
The rejection marks a significant escalation in the contest for control of the retailer, which operates prominent chains including The Athlete's Foot and Hype.
By characterizing the bid as inadequate, Accent's directors are signaling that they believe the company is worth significantly more than the proposed price.
This move effectively shuts down the immediate path for a friendly acquisition and sets the stage for a potential hostile bid or a prolonged negotiation period.