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The Week in Germany: Business and Technology

April 13, 2007

French Group set to Take over Germany's Puma

Puma Chief Jochen Zeitz addresses Puma shareholders, Photo: dpa

French luxury group Pinault- Printemps-Redoute (PPR) said Tuesday it plans to make a takeover offer for Puma after agreeing to buy a 27.1-percent stake in the German sportswear manufacturer.

Puma chief executive Jochen Zeitz welcomed the move and said he would recommended the board accept the offer.

"We strongly believe that this friendly transaction is in the best interests of the company and that the offer price is fair to all Puma shareholders," Zeitz said.

PPR, owner of the Gucci and Yves Saint Laurent fashion brands, acquired a 27.1-percent stake in Puma's main shareholder, Mayfair Beteiligungsfondsgesellschaft, for 330 euros (442 dollars) per share.

"Following this acquisition, PPR intends to launch a friendly takeover offer in cash on the remaining outstanding Puma shares at the same price of €330 per share," PPR said.

The offer, which valued Puma at €5.3 billion, lifted the company's shares 9 per cent to €342.50 on the mid-cap MDAX index on the Frankfurt stock exchange.

Analysts said the higher share price could trigger a bidding war for the German company, which has a global workforce of 7,800 compared with PPR's 78,000 employees in 75 countries.

Established 1948 in Herzogenaurach, Germany, Puma distributes sports and fashion goods in more than 80 countries. Last year, the brand with the leaping cat logo had revenues of €2.4 billion, making it the world's third-biggest sporting goods company after Nike and German rival Adidas.

PPR chairman Francois-Henri Pinault said, "this friendly transaction represents an exciting development for PPR and a milestone in our strategy of profitable growth.

In the context of the planned transaction, there will be no changes with regard to staffing, Puma said. All Puma bases, including headquarter locations in Herzogenaurach, Hong Kong and Boston, will retain their full independence, the statement added. (dpa)

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