The saga of the future of Mossimo Inc. contnues. After a bid by founder Mossimo Gianulli to take the company private several months ago failed, the latest attempt to acquire MOSS is under challenge from two sides.
Iconix Brand Group last week proposed to acquire Mossimo, Inc. for $4.25 in cash and $3.25 in Iconix stock, with additional stock possible based on performance. But after learning of the deal, one investor group, Laborers Local #231 Pension Fund, filed a class action lawsuit against Mossimo, Inc. in Los Angeles County alleging that Mossimo and its Board of Directors breached their fiduciary duties in approving the agreement with Iconix.
Adding another twist was Tuesdays announcement that Cherokee Inc. had proposed to acquire Mossimo, Inc. for $8.50 per share, consisting of $6.00 in cash and $2.50 in Cherokee stock. The Mossimo board will meet to evaluate the proposal, but a company spokesman said that it is too early to determine whether the Cherokee bid is superior to that offered by Iconix. The deal makes sense for Cherokee, as acquiring Mossimo would leave them little competition in Target apparel.