(Alliance News) - Shares in men's formal-wear firm Moss Bros PLC tumbled on Wednesday after reporting its suitor has attempted to pull out of a GBP22.6 million takeover deal.
Brigadier Acquisition Co Ltd, which owns Crew Clothing, a UK casual-wear retailer, is attempting to lapse its offer for Moss Bros.
Moss Bros agreed to Brigadier's takeover bid in March. Brigadier offered 22 pence per Moss Bros share.
The stock was 24% lower at 15.50 pence each in London on Wednesday morning.
Moss Bros noted that Brigadier "may not invoke a condition" which would mean the takeover did not have to proceed, "unless the circumstances which give rise to the right to invoke the condition are of material significance" to Brigadier in context of the offer.
"The board confirms that it will take all necessary action to make its case that those requirements have not been met and that the offer should not therefore be permitted to lapse," Moss Bros said.
By Eric Cunha; ericcunha@alliancenews.com
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