Gary Martin, Heelys’ chairman, said in a statement released Tuesday evening, “After careful consideration, our board rejected the offer after concluding that their proposal was not in the best interest of our stockholders. The board believes the $5.25 offering price does not reflect the value of Heelys and that entering into discussions with Skechers based on their unsolicited proposal is premature at this time.”
Skechers last Wednesday made public its proposal to buy Heelys in an all-cash deal, but analysts largely believed Heelys would reject the offer because it was too low.
In an Aug. 13 letter to Heelys’ board, however, Skechers had indicated its willingness to increase its bid “if increased value can be identified upon the completion of the selected and concise due-diligence measures.”
Trading at about $5.30, Heelys shares are up about 9 percent since Skechers’ bid was revealed.