Authentic Brands Group mulls rival bid for Guess

Authentic Brands Group is reportedly exploring a potential takeover offer for American fashion label Guess, setting the stage for a possible bidding war with WHP Global.

Sources familiar with the matter told Bloomberg that Authentic Brands is working on a counterproposal to the $13 (£9.77) per-share cash offer made by WHP Global, a brand management and acquisition firm, in March. Discussions are said to be ongoing with no final decision having been made.

News of the possible rival bid sent Guess shares soaring. As of mid-afternoon on Thursday, shares were up 17% at $11.64 (£8.74), valuing the company at approximately $603 million (£453 million).

Guess confirmed last month that it had formed a special committee of independent directors to assess WHP Global’s offer. The bid includes provisions for some shareholders, including founders Paul and Maurice Marciano, to retain their stakes in the business.

Established by the Marciano brothers in 1981, who left Marseille for the American dream, Guess was one of the early pioneers of designer jeans. Its first big hit was the Marilyn Jean with three zippers: one at the fly and one at each ankle. Its product line now spans apparel, handbags, accessories and footwear. In a strategic move earlier this year, Guess joined forces with WHP Global to acquire New York-based label Rag & Bone.

Authentic Brands, led by CEO Jamie Salter, has built a vast empire of heritage and high-street labels including Reebok, Forever 21 and Champion. If Authentic proceeds with a formal bid, it would signal another major move in the intensifying race to consolidate legacy fashion names.

Authentic Brands and Guess have been contacted for comment.