Playboy Hires Advisors on Hefner Bid

Sep 7, 2010 5:00 PM PST
CHICAGO — Playboy Enterprises announced today that its special committee board of directors has retained Raine Securities LLC as its financial advisor and Kaye Scholer LLP as its legal advisor.

The special committee was formed to consider Hugh Hefner’s bid to acquire the outstanding Class A and Class B shares of common stock of PEI that Hefner doesn’t currently own for $5.50 each. Hefner currently holds 69.5 percent of the Class A and 27.7 percent of the Class B shares.

With the offer, Hefner said he is not interested in selling or merging Playboy, nor would he sell shares to a third party or enter into talks with any other financial suitor. Hefner cited his concern for the company's brand, the editorial direction of the magazine and the adult company's legacy.

The company said neither the board of directors or the special committee have made any decision yet regarding Playboy’s response to Hefner’s initial proposal.

The company also said there can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

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