Hidary Group, who had an agreement to purchase Everlast Worldwide (EVST) for $30 per share, says that Everlast violated the terms of their merger agreement when it accepted an offer of $33 per share from Sports Direct International.
According to a SEC filing, Hidary believes that Everlast was not entitled to terminate the merger agreement because the company had not received a superior proposal, and that Everlast was required to give Hidary written notice that it had received a new offer from a rival suitor.
Hidary also was allowed to see any documents related to Brand Holdings' bid, according to the SEC filing and had 4 days to respond to any other offer.
Hidary says that it may pursue legal action to remedy the breach of contract.
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