UPDATE 1-Safilo rescue deal hopes boost shares
Fri Nov 27, 2009 7:13pm IST

* Deadline for bond offer pushed back to Monday

* Some bondholders said to be hoping for better offer

* Shares up 7.7 percent

(Adds trader, bondholder comment, details)


MILAN, Nov 27 (Reuters) - Hopes that a deal to rescue loss-making eyewear maker Safilo would go ahead boosted the company's shares on Friday after investor Hal Holding again gave bondholders more time to accept its crucial offer.

Hal Holding said on Thursday it had pushed back until Nov. 30 a deadline to complete a cash tender offer for the 195 million euros ($291 million) bond expiring in 2013. [ID:nWEA3169]

It is seeking at least 60 percent acceptance for the offer but by Thursday afternoon only 42.45 percent had been tendered.

Hal added that a lock-up agreement on 38.76 percent of the notes would end on Monday.

The holding, which has already extended the deadline once to Friday from an original date of Nov. 18, said it did not anticipate the offer period being extended again.

The plan foresees Hal buying the notes for a price equal to 60 percent of their nominal value as well as the restructuring of Safilo's senior debt facilities with main financing banks.

Shares in Safilo, which makes Gucci and Dior sunglasses, were temporarily suspended for excessive gains on Friday morning. They were up 7.7 percent at 0.5815 euro at 1300 GMT. Its bond was trading around 66 and 71.

One operator said some shareholders were betting on the deal coming through after the deadline was extended.

Some bondholders are still hoping to get a better price from Hal, however, dealers said. [ID:nGEE5AO2NM]

"The price is too low and there are some who are looking to force their hand," one dealer said.....................................

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http://in.reuters.com/article/fundsN...091127?sp=true