Candle maker Blyth rejects takeover offer from CVSL
Nov 15 (Reuters) - Candle maker Blyth Inc rejected an unsolicited acquisition proposal from direct seller CVSL Inc , saying the offer was not supported by committed financing and may leave it saddled with debt.
CVSL last month proposed to acquire Blyth for $16.75 per share, or about $270 million.
CVSL advisers indicated that the company did not have the capacity to raise more debt, Blyth said. Any debt raised to finance the deal would therefore be based on Blyth's leverage capacity, the company said in a statement.
The offer also required Blyth to use its cash to repay existing debt and did not address its working capital needs.
CVSL, formerly Computer Vision System Laboratories Corp, sells hand-crafted baskets and a line of products for the home, including pottery and cookware, through a network of independent sales representatives.
Blyth has retained Wachtell, Lipton, Rosen and Katz as legal advisers and Jefferies LLC as financial advisers.
Greenwich, Connecticut-based Blyth's shares closed at $12.50 on the New York Stock Exchange on Thursday.
(Reporting by Aditi Shrivastava in Bangalore; Editing by Don Sebastian)