PHILADELPHIA (AP) - Destination Maternity says the U.K.'s Mothercare has rejected two proposals to combine the businesses.
PHILADELPHIA (AP) — Destination Maternity says the U.K.'s Mothercare has rejected two proposals to combine the businesses.
Destination Maternity is known for its maternity clothing under brands such as A Pea in the Pod, Motherhood Maternity and its namesake. Mothercare offers baby and young children's clothing and other products such as strollers, car seats and toys.
Destination Maternity's most recent cash-and-stock proposal for about 266 million pounds (about $456.6 million) was submitted on June 1. Destination Maternity said that Mothercare has refused to discuss the proposals and that it continues to evaluate its options on a potential combination.
Philadelphia-based Destination Maternity may also be eyeing the combination with Mothercare PLC as a tax move. Incorporating overseas through acquisition has been done by drugmakers and other businesses recently so that they can save on taxes. Drug companies Actavis plc and Perrigo Inc. have acquired Irish companies and then "redomiciled" in Ireland.
Destination Maternity Corp. said that its latest proposal for Mothercare would be for the two businesses to combine under a new U.K. holding company that would be listed in the U.S.
Under the U.K.'s Takeover Code, Destination Maternity must announce its decision on whether it plans to make a binding offer for Mothercare by July 30.
Mothercare did not immediately respond to a request for comment.