Gildan Activewear says Browning West’s share purchase was ‘illegal’

Must read

Bank CEO shrugs off U.S. war on ‘woke’ capital, says ESG investing is good for business

Bill Winters, Chief Executive Officer at the Standard Chartered Bank, attends a panel session of the World Governments Summit in Dubai on February 12,...

Russia offering African governments ‘regime survival package’ in exchange for resources, report says

OUAGADOUGOU, Burkina Faso - Jan. 20, 2023: A banner of Russian President Vladimir Putin is seen during a protest to support the Burkina Faso...

Smartphone makers are dreaming of a ‘supercycle’ driven by AI. Analysts disagree

Samsung Electronics' flagship smartphones Galaxy S24 series are displayed during their unveiling ceremony in Seoul, South Korea, January 15, 2024. Kim Hong-ji | ReutersBARCELONA –...

The 11 GRANOLAS stocks power Europe to record highs, drawing Magnificent Seven comparisons

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 19, 2024. Staff | ReutersOver the last 12...

Gildan Activewear says Browning West's share purchase was 'illegal' © Reuters.

(Reuters) – Canadian apparel maker Gildan Activewear (NYSE:) on Sunday said it has learned that the activist fund Browning West, LP’s purchase of Gildan shares last month violated the U.S. anti-trust laws.

Gildan has alleged that the move was an “illegal” attempt by the U.S.-based fund to reappoint former Chief Executive Glenn Chamandy and eventually take control of Gildan’s board.

It added that Browning violated the U.S. anti-trust law by not notifying the U.S. Federal Trade Commission and U.S. Department of Justice about acquisition of voting securities and failed to comply with mandatory 30-day waiting period.

Under Canadian laws, shareholders can request a special meeting of all shareholders only if they hold more than 5% of stake. “Browning West’s share acquisitions barely put it over this threshold,” Gildan said in a statement.

The statement comes after it said Chamandy failed to disclose ties with shareholder, adding that it appears that the former CEO and co-founder treated Browning West differently than other shareholders.

Browning West, in a separate statement, termed Gildan’s accusations as an attempt to deprive shareholders of an opportunity to reconstitute the board at a validly requisitioned special meeting.

Earlier this month, Browning West escalated its fight with the Gildan board to reinstate Chamandy by seeking to replace a majority of members and requested a special meeting to reconstitute the board.

More articles

Latest article

Bank CEO shrugs off U.S. war on ‘woke’ capital, says ESG investing is good for business

Bill Winters, Chief Executive Officer at the Standard Chartered Bank, attends a panel session of the World Governments Summit in Dubai on February 12,...

Russia offering African governments ‘regime survival package’ in exchange for resources, report says

OUAGADOUGOU, Burkina Faso - Jan. 20, 2023: A banner of Russian President Vladimir Putin is seen during a protest to support the Burkina Faso...

Smartphone makers are dreaming of a ‘supercycle’ driven by AI. Analysts disagree

Samsung Electronics' flagship smartphones Galaxy S24 series are displayed during their unveiling ceremony in Seoul, South Korea, January 15, 2024. Kim Hong-ji | ReutersBARCELONA –...

The 11 GRANOLAS stocks power Europe to record highs, drawing Magnificent Seven comparisons

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 19, 2024. Staff | ReutersOver the last 12...

eToro wants to bring its trading app to Apple Vision Pro and Meta Quest headsets

An Apple Vision Pro mixed reality (XR) headset is seen at Apple store in New York, United States on Feb. 3, 2024.Fatih Aktas |...