Pod mulls two choices

Shareholders in listed fashion design company POD will decide on two competing acquisition offers at a meeting later this month.

POD directors yesterday approved the sale of one of POD's three core business divisions to a Melbourne-based group, The Merino Company.

Chairman George Gould said yesterday the $8 million sale of Designer Textiles International - which manufactures knitted merino fabric and garments - would leave POD with minimal debt and free to focus on its two other divisions.

POD also owns MicheleAnn - a garment designer for retail chains including Farmers and Max Fashions - and Mollers Homewares.

But the sale of Designer Textiles will be dependent on the outcome of another offer - this time for the company - lodged by Canterbury clothing manufacturer LWR yesterday.

That offer of 50c a share values POD at about $22.5 million. Shares closed up 1c at 48c yesterday.

Gould - who has a 25 per cent stake in POD - said he had yet to make up his mind on the merits of the LWR offer. The offer had also not yet been assessed by the POD board - once that was done a recommendation would be made to shareholders.

Gould said as a transaction in and of itself the Merino offer was a good one for the company.

Shareholders would get the opportunity to decide on which of the two offers they preferred at a meeting on June 29.