Apparel company PVH Corp ( PVH ) announced that
it will be acquiring The Warnaco Group Inc. ( WRC ) Wednesday.
The New York based company has reported that it has agreed to
purchase competitor, The Warnaco Group Inc. for a cash and stock
price of $2.9 billion.
PVH reported that it will pay Warnaco shareholders $51.75 in
cash as well as a part of its stock price, totaling $68.43 a share.
This price suggests a 25% increase over the stock's current price
This deal, which would make PVH one of the largest clothing
companies in the world, is expected to occur in the beginning of
2013. The board of directors from both companies have approved the
acquisition. Following the deal, Warnaco shareholders will own 10%
of PVH's outstanding common stock.
PVH Corp shares were mostly flat during premarket trading
PVH Corp( PVH ) is not recommended at this
time, holding a Dividend.com DARS™ Rating of 3.4 out of 5
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .
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