DOW JONES NEWSWIRES
Kenneth Cole Productions Inc. (KCP) said a special committee of
independent directors has retained Bank of America Corp.'s (BAC)
Merrill Lynch as an adviser to help the apparel maker evaluate a
buyout offer from the company's founder.
Two weeks ago, Kenneth Cole offered to buy out his namesake
company, in a deal that valued the company at about $280 million
and raised the thorny issues that come up when insiders bid on
their own companies.
Cole, who already owns about 47% of Kenneth Cole Productions
Inc. and controls 89% of its voting power, is offering $15 a share
for the remaining stock in the company. Cole has said private
ownership was in the company's best interest in light of recent
market challenges and a competitive retail landscape.
The special committee, which was formed by the company's board,
sent a letter to Cole last week requesting that he reconsider his
position that he is unwilling to consider any alternative
proposals. Cole responded in a letter on Friday that he did not
plant to change his stance, the company said.
Last week, Kenneth Cole Productions reported it swung to a
fourth-quarter profit on strength in the fashion company's
wholesale operations and reduced expenses following the closure of
unproductive retail stores.
Shares were down 6 cents at $15.75 in recent trading. The stock
is up 49% so far this year.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com