Tod investor Tabor Asset Management has published an open letter calling for an increase in the price offered by L Catterton to buy 36% of the Italian luxury shoemaker, saying the price of 43 euros per share is unfair.

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The offer, launched by the LVMH-backed private equity firm in agreement with Tod’s controlling shareholder with the aim of taking the group private, started on Monday and will run until May 8.

Tabor Asset Management said on Tuesday that the offer underestimates the value of Tod’s brands and fails to recognise the progress the brands have made, it said in an open letter.

“It is a bad deal for Tod’s minority shareholders that have held the stock for years,” it said.

The fund, which said it owns 1.1% of the group’s capital, published a similar letter when Tod’s majority shareholder, the Della Valle family, tried to delist the company in 2022.

As of Monday evening, L Catterton said it owned 8.8% of the Italian group, mainly bought before the official launch of the offer but at the same price.

Tod’s, whose other brands include Fay and Roger Vivier, did not respond to a request for a comment.
Since the offer was announced in February, Tod’s shares have been trading around the offer price of 43 euros per share.

Under the deal, CEO and founder Diego Della Valle will tender his 10.45% stake in the company to L Catterton, while retaining 54% of the company together with his brother Andrea.

LVMH will keep its 10% stake and L Catterton will own the remainder of Tod’s if the tender offer is successful.
L Catterton added that if the threshold required to delist the company is not met, it will take Tod’s private by merging the group into the vehicle used to launch the offer.