Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Classified Sites

The Canadian Press - ONLINE EDITION

Destination Maternity says Mothercare rejects 2 proposals to combine businesses

PHILADELPHIA - 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.

Mothercare said in a statement that it reviewed Destination Maternity's revised proposal and believes that it undervalues the company. Mothercare said the revised bid also didn't address its material concerns about "significant execution risk" and delivering value to its shareholders.

Mothercare said that its other concerns include the "lack of strategic rationale for a combination" and uncertainty on the proposed financing arrangements. The company said its board is still confident "in the ongoing execution of Mothercare's strategy as an independent company and that its successful delivery will create significant value for shareholders."

Philadelphia-based Destination Maternity may 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.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.


Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates