Shares of Pier 1 Imports got a boost after the retailer dropped its much-criticized offer to buy rival home-furnishings chain Cost Plus.
Fort Worth, Texas-based Pier 1’s stock closed 6 percent higher yesterday after the company said it wasn’t likely to acquire a majority interest in Cost Plus “at a price that would make sense” for its shareholders. Pier 1’s all-stock bid, initially valued at $88.4 million, had fallen 23 percent prior to yesterday.
In addition to worries about the wisdom of a merger between the two struggling chains, Pier 1 shares took a beating last week when the company reported disappointing first-quarter results.
Sources said that, despite the unpopularity of the bid with major shareholders, Pier 1 never moved to sweeten it with a cash component.