Firm withdraws hostile bid for Prestige Brands

Genomma Lab Internacional of Mexico City, which owns many of the best-known consumer brands there, has withdrawn a $16.60 a share hostile bid for the company that is its mirror image in the U.S., Prestige Brands Holdings Inc. of Irvington.
Prestige”™s position was that the company was worth more than $16.60 a share.
Genomma withdrew the bid May 3. Prestige closed at $16.42 May 2, having hit a high that day of $16.60. The next day, it tumbled 15 percent, $2.49 a share, to close at $13.93.
“Prestige has stated repeatedly that it is open to considering offers that would create compelling value for stockholders and offer certainty of closing. That is still the case,” the company said in a statement. “Prestige”™s board of directors carefully reviewed Genomma”™s proposal with the assistance of its financial and legal advisers and, after thorough consideration in accordance with its fiduciary duties, determined that the proposed price was inadequate and the proposal was not in the best interests of Prestige Brands and its stockholders.”
Genomma had said it would nominate its own slate of directors at Prestige”™s annual meeting June 29.
Prestige, which markets and distributes brand name products such as Spic and Span, Chloroseptic and Comet, will report quarterly earnings May 17. It said it expects to report a 38 percent jump in revenues for its fourth quarter, which ended March 31. It also said it anticipates earning 23 cents a share in the quarter. For fiscal 2013, the earnings forecast is for adjusted per share profit of $1.22 to $1.32.