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ON THE TABLE: Thai conglomerate Central Retailing Corp. made an offer of 250 million euros, or $370.7 million at current exchange, for Italian luxury department chain La Rinascente, according to press reports. The sum, minus 45 million euros of debt coverage, is 10 times the store’s earnings before interest, taxes, depreciation and amortization and in line with estimates that had been given by sources earlier this year.
Maurizio Borletti, one of La Rinascente’s owners and a descendant of the original founder, did not make an offer but launched arbitration proceedings against the sale, claiming to have ownership rights as he currently holds 4 percent of the company. Though Borletti’s latest move could tie up the process for more than a year, national newspaper Il Sole 24 Ore wrote of the deal as if it were a fait accompli, implying that everything could be concluded within a month, the amount of time the current owners have to deliberate on the offer.