Kathmandu's chairman and board this week labelled the offer - of mainly shares and a 20c per share cash component, all valued at $362 million - ''highly opportunistic'' and not reflecting the underlying value of the sport and leisure retailer.
However, Briscoe (BGR) yesterday countered that KMD's financial forecasts were ''ambitious assumptions'' and the company had ''key failings'', citing cost overruns and ''poor inventory management''.
An independent report by Grant Samuel this week concluded the underlying value of KMD shares was in a range of $2.10-$2.41, compared with Briscoe's implied $1.80.
BGR's managing director and more than 78% shareholder Rod Duke said yesterday, in response to KMD's earlier outright bid rejection, his $1.80 takeover offer ''fully reflects'' the value of Kathmandu shares.
BGR's present implied $1.80-per-share offer ''remains on the table'' and open for acceptance until September 17, unless extended in accordance with the takeovers code, Mr Duke said.
He said KMD's 2015 full-year earnings figures came in ''well below'' what he expected and well short of analyst consensus forecasts.
''In the absence of our takeover offer, it is highly likely that the Kathmandu share price would have suffered a significant downward correction from the $1.39 price as at market close immediately prior to Briscoe Group announcing its 19.9% shareholding,'' Mr Duke said.
''Nothing in Kathmandu's target company statement provides confidence that management is able to deliver a turnaround and achieve its lofty earnings forecasts.''
He believed it made ''enormous sense'' to join the KMD and BGR businesses together ''to create a bigger, better and stronger retailing group to the benefit of both companies' shareholders''.
BGR has 80 outlets under three banners in New Zealand, with total sales to January of $507million, while KMD has 157 outlets, the majority in Australia, with total sales for the year to October of $393million.
