On Wednesday, Scotiabank reaffirmed its Sector Outperform rating and $40.50 price target for shares of Gildan Activewear (NYSE:GIL), in light of recent developments regarding the company's future. Gildan's board of directors is considering a sale of the company, as reported by the Globe and Mail.
Following the market's close on the same day, Gildan confirmed via a press release that it has received a takeover proposal. In response, the board has established a special committee composed of independent directors to evaluate this proposal, along with other potential alternatives.
The press release from Gildan Activewear did not disclose the identity of the interested party or the financial details of the takeover approach. Still, it emphasized the formation of the special committee to ensure a thorough review process. The committee's role will be to assess the takeover bid in the context of Gildan's strategic plans and to consider the best interests of the company and its shareholders.
According to a source cited in the Globe and Mail article, any prospective buyer would likely have to offer more than $42 per share to acquire Gildan Activewear. This figure suggests a potential premium over the current price target set by Scotiabank. The news of the takeover approach has put a spotlight on Gildan's stock, as investors and analysts alike will be closely monitoring the situation for further developments.
Gildan Activewear has not provided a timeline for the review process or any decision regarding the takeover proposal. The company has stated that further announcements will be made if and when necessary. Until then, the market is left to await the outcome of the board's review and the potential impact on Gildan's share price.
The apparel manufacturer's stock performance and investor sentiment may be influenced by the ongoing review of the takeover proposal. As the situation unfolds, Gildan's shareholders will be looking for signs of a favorable outcome from the board's evaluation of the proposal and any competing alternatives that may arise.
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