Destination XL Rejects Camac Fund’s Sweetened Zodiac Partners Bid Again
DXLG•Destination XL’s board turned down Zodiac Partners II’s sweetened tender offer for a second time and the stock gained 0.9% following the rejection. The West Palm Beach acquisition unit of Camac Fund had increased its bid at end-June but DXLG executives deemed it insufficient.
1. Board Rejects Sweetened Tender Offer
Destination XL Group’s board refused Zodiac Partners II’s revised bid for a second time, signaling that the increased end-June proposal did not meet its valuation expectations. Following the announcement, DXLG shares rose approximately 0.9%, reflecting investor sentiment on the board’s defensive stance.
2. Acquirer Profile and Potential Next Moves
Zodiac Partners II, an acquisition vehicle of Camac Fund based in West Palm Beach, Fla., bolstered its initial takeover offer late in June in an effort to win board approval. With the offer now rejected twice, the entity may reassess its bid structure or explore alternative approaches to engage shareholders or revise its proposal.
