Mossimo Founder Drops Bid to Take Company Private

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Mossimo Giannulli, founder and majority shareholder of clothing maker Mossimo Inc., on Tuesday withdrew an offer to buy the remainder of the company’s shares and take it private.


Giannulli, also chairman and co-chief executive, told the board of the Santa Monica-based company that he remains interested in acquiring publicly held shares, but the stock price is now too high. He will not increase his $4-a-share bid.


Mossimo shares fell 82 cents, or 14.3 percent, on the news to settle at $4.90 on the Nasdaq. Mossimo shares have consistently traded above $4 for the past month, and on Aug. 12 reached a new 52-week high of $6.20.


Mossimo’s net income for the second quarter rose 120 percent to $2.2 million, compared to $1 million for the like period a year ago. Sales at Target Corp., where a majority of Mossimo’s revenue is generated, have increased after slumping in 2004.

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