LONDON--U.S. maternity apparel company Destination Maternity said Friday it doesn't intend to make an offer for Mothercare PLC and is withdrawing its proposal for a possible combination with Mothercare.
On July 2, Destination Maternity made an announcement confirming its interest in a possible combination with Mothercare and confirming its submission of two non-binding written proposals for a possible combination, both of which had been rejected by the Board of Directors of Mothercare.
U.K.-based mother and baby products retailer Mothercare confirmed it rejected a GBP266 million ($453 million) takeover approach, saying the proposal undervalued the company.
"We are disappointed that the shareholders of Mothercare have not supported our proposal and that the Board of Mothercare was unwilling to allow us to conduct customary due diligence and engage in discussions with us regarding our proposal," Destination Maternity Chief Executive Ed Krell said.
Mothercare officials weren't immediately available for comment.
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(END) Dow Jones Newswires
July 25, 2014 14:15 ET (18:15 GMT)
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