Tabor Asset Management, an investor in Tod’s, has once again expressed its dissatisfaction with the offer made by the founding family of the Italian luxury shoe company as the bid approaches its conclusion. According to data from the Italian stock exchange, only 5.89% of the targeted shares had been taken up as of Thursday, representing just 1.5% of the company’s capital. Tod’s has not yet provided any comment on the matter.

The tender period for the offer will end on Tuesday, and the last few days are typically crucial in determining the outcome as investors often wait until the final moments to tender their shares. The founders of Tod’s, Diego Della Valle and his brother, launched a bid of 338 million euros ($329 million) to acquire the remaining shares in the company and delist it. This move aims to revitalize Tod’s by managing its brands separately and potentially divesting some of them to focus investments on the most profitable ones, namely Roger Vivier and Tod’s.

Since the announcement of the offer in early August, Tod’s shares have been trading slightly above the offer price of 40 euros per share. As of Friday, they remained unchanged at 40.62 euros each. The Della Valle family currently holds a 64.5% stake in the company, while French luxury giant LVMH has stated that it will retain its 10% stake. The Tod’s board has deemed the offer price of 40 euros per share to be fair.

In September, Tabor Asset Management sent a letter expressing its concerns, and now they have sent a second letter claiming that the Tod’s board should have provided a negative opinion on the fairness of the offer. The hedge fund argues that the offer does not reflect the true value of the company and its group. They also highlight that the banks financing the offer used a group of peers with higher multiples than those identified by the Tod’s board in their fairness opinions. According to the banks’ group of peers, the price should be around 64 euros.

Tabor Asset Management currently holds a 0.6% stake in Tod’s. To achieve their delisting goal, the Della Valle family needs to reach 90% ownership of the company, including LVMH’s stake. If they fail to do so, the family still plans to merge Tod’s with DeVa, the family’s vehicle promoting the offer.

Useful Links:
1. Reuters
2. Forbes