Following the rejection of CVSL's (CVSL -8.3%) $16.75 per share offer, Chairman John Rochon says his company has liquidated its remaining stake in Blyth (BTH +3.2%). Rochon says CVSL has about broken even financially on its investment.
CVSL (CVSL -13.3%) investment committee chairman John Rochon, Jr. said that he continues to believe a merger of CVSL and Blyth (BTH -2.5%) is in the best interests of both companies' shareholders. "We will amplify our proposal to Blyth in due course ... Based on Blyth's board's initial comments, it is not clear to us that they have a full understanding of our proposal," he said.
Blyth's board rejected CVSL's $16.75/share takeover proposal earlier today, citing a number of concerns relating to the debt/equity-based financing of the proposed transaction.
Shares of Blyth (BTH +12.9%) squeeze higher on 5 times average daily volume. Shorts are scrambling to cover, with a staggering 79.1% of the float sold short as of Aug. 30. The move follows a 5.8% gain yesterday after CEO Robert Goergen disclosed he had purchased 10K shares.
Hat tip to SA contributor John Gilliam, who wrote earlier this morning that shares may go parabolic due to an overwhelming number of shares sold short combined with insider purchases (both reported and "shadow").
User2910+ FollowFollowing- Unfollow|Send Message18 Mar
$BTH it looks like they have met the criteria in bond covenant that lets them start repurchasing shares again? Any other opinions pls?
Mar 18, 2:51 PM
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Blyth Inc is a multi-channel company focused on the direct to consumer market. The Company designs and markets home fragrance products and decorative accessories, as well as weight management products, nutritional supplements and energy drinks.