Playboy Forms Special Committee

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Playboy enterprises said Tuesday that it has formed a special committee of its board of directors to evaluate the $5.50 per share going private offer made by founder Hugh Hefner last month.
Playboy said Tuesday that it has named Sol Rosenthal and Shing Tao to the special committee to "evaluate and determine the company's response" to the Hefner offer. Rosenthal is counsel in the Los Angeles office of Arnold & Porter, an international law firm and a prominent arbitrator and mediator in entertainment and business matters. Tao is chairman and chief investment officer of Pacific Star Partners, a private investment group. Playboy said that Rosenthal will be chairman of the special committee.
Hefner announced his all cash $123 million offer for the remaining shares in Playboy he doesn't already own on July 12. Hefner, who founded Playboy more than 50 years ago, is backed by Michigan-based private equity firm Rizvi Traverse Management. On July 15, rival FriendFinder Networks, publisher of Penthouse magazine, countered with a $210 million offer (about $6.25 per share) for the company. Playboy has said it would give the FriendFinder proposal "appropriate consideration."
Playboy shares closed at $5.37 each (up 2 cents, or 0.4% per share) on Aug. 3.

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