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Steven Madden completes evaluation of strategic alternatives
19
Feb '08
Steven Madden Ltd announced that its Board of Directors has completed its previously announced evaluation of strategic alternatives. After careful consideration and upon the recommendation of the Strategic Review Committee of the Board, the Board has determined that the best method to maximize shareholder value at this time is to use a portion of the Company's cash balances to repurchase shares at attractive values through a modified "Dutch Auction" tender offer.

Under the terms of the tender offer, the Company will repurchase up to 2,600,000 shares of its common stock at a price per share not greater than $20.00 and not less than $16.50. This represents the repurchase of up to approximately 12.9% of the outstanding shares of common stock. The tender offer is expected to commence on February 20, 2008 and to expire, unless extended, at 12:00 midnight, Eastern Time, on March 18, 2008. Assuming that the maximum of 2,600,000 shares are tendered at the maximum purchase price of $20.00 per share, the aggregate purchase price will be $52,000,000.

The Strategic Review Committee had considered other alternatives, including a sale of the Company. Based on current market conditions, upon the recommendation of the Strategic Review Committee, the Board has determined that it would not be in the shareholders' best interest to actively pursue a sale of the Company at this time.

"Over the last few months, we have thoroughly explored a number of strategic alternatives to maximize shareholder value," commented Walter Yetnikoff, Chairman of the Strategic Review Committee. "Following the Board's evaluation and consideration of these alternatives, we have concluded that the Company's financial position, stock valuation and current market conditions make this an opportune time to launch a Dutch Auction tender offer. This plan will allow us to return significant capital to our shareholders and improve the efficiency of our balance sheet. Further, this reflects the confidence we have in the strength of our brand and our business model."


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