Playboy Board to Evaluate Hefner’s Bid

CHICAGO: Playboy Enterprises’ board of directors has formed a special committee to consider founder Hugh Hefner’s proposal to buy out the rest of the company.

A special committee consisting of attorney Sol Rosenthal and Playboy director Shing Tao will evaluate Hefner’s bid to acquire all of the outstanding shares for Playboy that he does not already own. Hefner is offering $5.50 per share in cash. This would take the company private in a deal valuing Playboy at $185 million.

Penthouse magazine owner FriendFinder Networks has also made a formal, competing bid for the Playboy empire worth $210 million. This deal would require Hefner to agree to sell his nearly 70-percent stake.

The board of directors cautions shareholders and others considering trading in its securities that no decisions have been made by the board of directors or the special committee.