Mossimo Shares Fall as Founder Withdraws Bid

Shares of Mossimo Inc. fell as much as 18% after the company’s founder, Mossimo Giannulli, withdrew his proposal to acquire the 35% stake of the design company he doesn’t already own.

Shares of Mossimo fell 82 cents to $4.90, after touching $4.70.

Giannulli, who founded the Santa Monica-based company in 1987, offered on April 12 to acquire the outstanding shares at $4 each. The stock climbed 72% after the announcement. Mossimo licenses clothing for men and women to Target Corp.

Giannulli, in a statement, told a special board committee that although he “remains interested” in acquiring the outstanding shares, he wouldn’t “increase his bid to the company’s current stock trading levels.”

Edwin Lewis, Mossimo’s president, didn’t return a message left at his office.