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Surfstitch rejects $55m offer

AAP logoAAP 2/11/2016 Petrina Berry

A company that is suing Surfstitch has lobbed a $55 million takeover offer for the embattled online clothing and sports equipment retailer.

Surfstitch says it has fielded a number of unsolicited takeover offers, including one from Coastalwatch which is suing the former over a fallout around a content sharing deal.

Coastalwatch, which is linked to Crown Financial, a 10.4 per cent stakeholder in the target, is offering 20 cents a share for Surfstitch - valuing the company at $55.4 million.

"The board has decided the indicative proposal is not in the best interests of the company because of the highly conditional nature of the offer," Surfstitch said in a statement on Wednesday.

It also said the fact Coastalwatch and Crown Financial have raised legal actions against Surfstitch and continue to pursue litigation, also detracts from the offer.

Surfstitch, which reported a full-year net loss of $155.4 million for 2015/16 in August, says it is assessing a number of other non-binding and indicative expressions of interest.

"None of these is at an advanced stage and there is no assurance that any will lead to a transaction," it said.

Shares in Surfstitch were up one cent to 18.5 cents at 1436 AEDT.

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