By Dean Seal
Shares of LL Flooring rose after the company’s founder submitted a new bid to acquire the company.
The stock was up 8.9% at $3.07 in early trading. Shares have fallen 45% so far this year.
Tom Sullivan, the founder of the former Lumber Liquidators, on Tuesday proposed through his firm F9 Investments to buy the equity in the company that he doesn’t already own for $3 a share.
LL Flooring previously rejected Sullivan and F9’s offer to buy the company at $5.75 a share for being too low. Sullivan subsequently pulled the bid, citing the company’s poor financial performance.
The company has since received an offer from the diversified holding company Live Ventures for an acquisition at $5.85 a share in cash.
Sullivan is now back at the table with an offer that he says reflects both the company’s underperformance and “the board’s refusal to meaningfully engage with F9 and its affiliates or allow it to perform basic due diligence” after its earlier bid. He intends to nominate himself and two others to LL Flooring’s board at its next shareholder meeting.
Write to Dean Seal at [email protected]
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