French Luxury Goods Company PPR Owns 62% of Puma

French luxury goods company PPR said Tuesday it owns 62.1% of Puma following an extended offer period for the German sportswear company.

PPR bought 27.1% of Puma in April and announced its offer to buy the outstanding shares for 330 euros ($454.77) each, valuing the company at 5.3 billion euros ($7.3 billion). The public offer opened in May and ended July 11.

"We are very pleased with the final results of our offer to the Puma shareholders who have sent a strong signal of support for the transaction," PPR Chairman and Chief Executive Francois-Henri Pinault said in a statement.

Analysts had initially said the 330 euro-per-share offer was too low, and some investors hoped for an increase. In May, however, these expectations were lowered when Puma decreased its 2007 profit target, blaming lower than expected order intake.

"With the support of PPR we will ... invest in brand-building," Puma Chairman Jochen Zeitz said in a separate statement Tuesday. Puma management supported the bid, calling it "fair."

Puma, the world's third largest sportswear maker by sales, expects to benefit from cost savings and a better platform for its global expansion from the takeover.

Puma shares closed at on Monday at 318 euros ($438.24). PPR shares closed at 130.84 euros ($180.31).

Contact U.S. News


    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • Insight to three properties in Minneapolis, with Matt Baker, Coldwell Banker Burnet.

  • CNBC's Jackie DeAngelis and the Futures Now Traders provide their play on the U.S. dollar as the S&P hit an all-time high, and a money-making oil play as gold plunges to a two-month low.

  • Indiana Kelley School of Business professor and faculty chair Phillip Powell, discusses how his school takes on the disruption of online education, and the immersive program at the school where students are thrust into danger zones to help small businesses get off the ground.