Analysts have complained of poor disclosure in fashion retailer YGM Trading's $107 million takeover offer for struggling Theme International Holdings.
In particular, the analysts queried a $1.2 billion asset injection at the centre of the offer. YGM plans to inject casual-wear chain operator Hang Ten into Theme at a consideration of 12 billion new Theme shares at 10 cents each.
Independent financial analysts questioned the basis of the valuation and pressed for more disclosure of Hang Ten's performance. They said it had been disappointing last year in the unit's main market, Taiwan.
Hang Ten had been hit by a slowing economy and keen competition - especially from arch-rival Giordano International, they said. Giordano and YGM are battling for control of Theme.
One Theme shareholder also complained about poor disclosure in YGM's offer.
The shareholder, who declined to be named, said: 'Other than its name, no specific information on Hang Ten is available in the announcement.' According to YGM's latest annual report, Hang Ten has 190 outlets in Taiwan, but reported 'lower turnover and profit' in the year ended March 31.