In response to the intense media speculation that followed Glen Nussdorf's SEC filing at the end of 2006, Parlux's ceo and president Ilia Leckach has written to Nussdorf on behalf of the board of directors, inviting him to make a formal offer to purchase the company.
The letter reads as follows...
" According to your SEC filings, for almost three months you have been "exploring the possibility of making an acquisition proposal for Parlux" and you and your representatives have "had preliminary discussions with potential financing sources to obtain the funds necessary for such a transaction." Yet to date, no acquisition proposal has been forthcoming. We want to take this opportunity to invite you to submit a bona fide acquisition proposal to the Board of Directors of Parlux. Although Parlux is not currently for sale, we are focused on enhancing value for all of our stockholders. Consistent with our fiduciary duties to Parlux shareholders, your acquisition proposal would be given full and fair consideration by the Board.
We believe that the interests of all Parlux stockholders are best served if your proposal is considered by Parlux's duly-elected independent Board of Directors. Notwithstanding your statements to the contrary, we find it unreasonable to believe that your hand-picked nominees, all but one of whom are business associates of you or your affiliates, will exercise any real independent oversight over an acquisition proposal submitted by you. We find it disingenuous, after three months of "exploring the possibility of making an acquisition proposal," to ask stockholders to give you control of the company as you continue your evaluation process. If you are truly interested in acquiring the company, as stated above, you are welcome to submit a bona fide proposal. However, should you continue your efforts to take control of Parlux without compensating stockholders for their investment in the company, we will vigorously oppose your efforts."
The letter follows disapointing half year results: the company announced a net loss of $10.6m in the six months ending 30 September, 2006.