Parlux
This article was originally published in The Rose Sheet
Executive Summary
An independent committee of Parlux' board of directors believes it is not "prudent" to move forward in accepting Parlux CEO Ilia Lekach's unsolicited offer to take the fragrance company private due to "significant financial and other contingencies contained in the proposal," Parlux announces. If the company agrees to the proposal and the deal does not close, it may have a "very negative" effect on Parlux, the company adds. In order to protect Parlux and its shareholders, the committee requests closing contingencies be removed. PF Acquisition of Florida, the entity representing Lekach, notes in a follow-up letter it does not expect the committee to "incur any expense" related to the proposal until the acquiring firm has "obtained its financing commitments," and that once it does so it expects to proceed "in a customary fashion without any deposit or waiver of the financial and other contingencies and with a break-up fee." Lekach recently offered to acquire the company for $29 per share (1"The Rose Sheet" June 19, 2006, In Brief)...