02:47 PM EDT, 04/03/2024 (MT Newswires) -- The board of Gildan Activewear Inc. ( GIL ) is pushing potential buyers to make their initial takeover offers by April 10 as the clothing manufacturer attempts to find alternatives to an activist investor campaign aimed at replacing its directors, The Globe and Mail is reporting Wednesday afternoon.

The report noted that Montreal-based Gildan's board put the company up for sale in February after receiving an unsolicited takeover approach. It also noted the expression of interest came after Gildan's board dismissed co-founder and chief executive officer Glenn Chamandy in December, kicking off a campaign led by fund manager Browning West to replace the board and reinstate Chamandy.

The Globe and Mail is reporting that Gildan's financial and legal advisers are now pushing potential bidders to make their initial offers by next Wednesday, according to two sources familiar with the process, as part of a strategy to give shareholders clarity on the sales process ahead of Gildan's annual meeting, scheduled for May 28, where shareholders will vote on board members.

At least three U.S. private equity funds -- Bain Capital, Sycamore Partners and Clayton Dubilier & Rice LLC -- are circling Gildan, according to analysts, the report said. It noted Gildan's advisers are the investment banking units of Royal Bank of Canada and Goldman Sachs Group Inc. and law firm Norton Rose Fulbright Canada LLP. Canaccord Genuity Group Inc. is advising the special committee of Gildan's board that will consider takeover offers.

The report noted Gildan is one of the country's largest publicly traded consumer product companies, with a US$8.4-billion market capitalization. It also noted Gildan's board has been in a war of words with Browning West and several other institutional investors since December, with some fund managers arguing Gildan's shares are undervalued and the directors' decision to put the company up for sale is driven by fears of losing the proxy vote at the annual meeting.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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