No2 shareholder wants at least 50pc premium
A major shareholder in apparel firm Giordano International, which has been the subject of recent takeover speculation, is interested in selling its stake if it receives an offer at least 50 per cent above the current share price.
Harris Associates, a US-based fund manager and the second-biggest shareholder in Giordano with a 14.08 per cent stake, is not happy with the Hong Kong-listed company's recent earnings and says the dividends paid out have been too small.
Three global retail giants - Esprit, Spanish retailer Zara and Tokyo-listed Uniqlo operator Fast Retailing - have been considering taking a substantial stake in Giordano, one of Asia's largest clothing chains.
Analysts said Giordano, which has an extensive distribution network on the mainland, is vulnerable to a takeover because its top three shareholders have a combined stake of 34.37 per cent.
Giordano founder Jimmy Lai Chee-ying resigned as chairman in 1994 and sold his 27 per cent stake in 1996, leaving Giordano without a key shareholder. The management now holds less than 3 per cent.
David Herro, chief investment officer of international equities company Harris Associates, said his company would be interested in disposing of its stake in Giordano at a premium of at least 50 per cent of the current share price.
