Cluett, Peabody Rejects Offer

Cluett, Peabody & Co. said Monday that its board has rejected a $256-million offer from California investor Paul A. Bilzerian to acquire the apparel concern. The board also executed a “poison pill” provision aimed at thwarting an unwelcome takeover attempt, the firm said.

Under the provision, Cluett, Peabody launched an offer to exchange a package of cash, preferred stock and notes valued at $45 a share for up to 2.22 million, or 26.4%, of its 8.4 million total common shares outstanding. The cash portion is $11.25 a share.

The provision gave Cluett, Peabody’s board the authority to commence the exchange offer once a hostile suitor acquired or bid for 25% or more of the company’s shares.