The fight to acquire Everlast continued last week with Hidary Group throwing the latest punch as it accused Everlast Worldwide Inc. of violating the previous merger pact by accepting the new $33.00 per share takeover bid from Sports Directs Brand Holdings subsidiary. In a letter filed with the SEC, Hidary said Everlast was “not entitled to terminate the merger agreement … because the company had not received a superior proposal.”
On June 28, Everlast terminated its merger pact with Hidary in favor of a deal with Brand Holdings. Both suitors raised their bids the next day, but Everlast stayed with its new partner, Brand Holdings. Hidary said Everlast was required under the terms of the merger pact to give it written notice that it had received a new offer from a rival suitor. Hidary also was allowed to see any documents related to Brand Holdings' bid, according to the SEC filing. Hidary said it was entitled to a four-day window to review those documents and negotiate a potential new offer for Everlast.
Hidary further said it was continuing to explore all options, including legal and equitable remedies, regarding Everlast's potential breach of the merger pact.
