flagging-retailer-colorado-puts-the-boot-into-affinity-equity-partners

Flagging retailer Colorado puts the boot into Affinity Equity Partners

The Australian clothing retailer says AffinityÆs takeover offer is flawed and accuses the firm of unfair play.
Asian investment firm Affinity Equity Partners has found an unwilling target in Australian clothing retailer, Colorado, which has called its A$430 million $322 million takeover offer ôspurious and destined to failö.

The companyÆs main gripe with the off-market cash offer of A$4.50 per share is that it is conditional on the company achieving an unrealistic earnings target for the first half of 2006.

Affinity has stated that the offer wonÆt stand if first half earnings before tax are lower than A$14 million, a figure that is A$4 million higher than what management and equity analysts forecast. Colorado has hit financial difficulties in recent years and reported a 19% drop in annual net profit in March....
¬ Haymarket Media Limited. All rights reserved.

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