The Amer Sports Corporation acquisition of Salomon from adidas-Salomon AG will be delayed by two weeks due to a revision of the processing schedule by EU competition authorities. Salomon will commence operating as an Amer Sports division on October 1, 2005, but the acquisition is not expected to close until mid-October.
The financial terms of the deal will not change.
In somewhat related news, a Reebok International shareholder has filed a class action suit in Massachusetts seeking to prevent the sale of RBK to adidas. Bryan Jennings, a shareholder who is perhaps the only person on the planet that thinks Reebok is worth more than adidas is paying for it, is alleging that Reebok directors shirked their fiduciary duties in connection with the deal that will see adidas pay $3.8 billion to acquire the company. While adidas will pay a 34%+ premium over the share price when the deal was announced, the complaint alleged that Reebok directors failed to get the highest possible price for the business through an open bidding process or other means.
The suit, which was filed on August 12, seeks an injunction to rescind the merger agreement and prevent the merger from going forward. Jennings also wants Reebok to be sold or auctioned for “the highest possible price, and damages, including reasonable attorneys and experts fees,” according to an SEC filing made by Reebok last week.
Reebok said the lawsuit is in its preliminary stages and that it “believes that the lawsuit is without merit and intends to defend vigorously against it.”
adidas did get some good news from another deal last week, as the ubiquitous three-stripe brand re-signed the Australian Olympic Committee to a long-term deal. The agreement, which commences immediately, will see adidas outfit the Australian Olympic team in Bejing in 2008 and will run through the 2016 Olympics.
adidas last outfitted the Aussie team at the 1996 Olympics in Atlanta.