01:17 PM EDT, 03/21/2024 (MT Newswires) -- Gildan Activewear's ( GIL ) shares are currently undervalued and a high premium would be required to win shareholders' support for a potential buyout offer, Bloomberg News reported Thursday, citing an emailed statement from a portfolio manager at Jarislowsky Fraser.

A unit of The Bank of Nova Scotia's (BNS), Jarislowsky Fraser holds a 7% stake in Gildan and is the company's largest shareholder.

Investment in technology and manufacturing in the last three years has strengthened Gildan's position and "the current share price does not reflect the long-term prospects of the company," the report said, quoting Jarislowsky Fraser portfolio manager Charles Nadim.

Neither Gildan Activewear ( GIL ) nor Jarislowsky Fraser immediately responded to MT Newswires' requests for comments.

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

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