Kenneth Cole Retains Adviser To Evaluate Buyout Offer

   DOW JONES NEWSWIRES 
 

Kenneth Cole Productions Inc. (KCP) said a special committee of independent directors has retained Bank of America Corp.'s (BAC) Merrill Lynch as an adviser to help the apparel maker evaluate a buyout offer from the company's founder.

Two weeks ago, Kenneth Cole offered to buy out his namesake company, in a deal that valued the company at about $280 million and raised the thorny issues that come up when insiders bid on their own companies.

Cole, who already owns about 47% of Kenneth Cole Productions Inc. and controls 89% of its voting power, is offering $15 a share for the remaining stock in the company. Cole has said private ownership was in the company's best interest in light of recent market challenges and a competitive retail landscape.

The special committee, which was formed by the company's board, sent a letter to Cole last week requesting that he reconsider his position that he is unwilling to consider any alternative proposals. Cole responded in a letter on Friday that he did not plant to change his stance, the company said.

Last week, Kenneth Cole Productions reported it swung to a fourth-quarter profit on strength in the fashion company's wholesale operations and reduced expenses following the closure of unproductive retail stores.

Shares were down 6 cents at $15.75 in recent trading. The stock is up 49% so far this year.

-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; [e-mail]