NEW YORK – Alberto-Culver Co.’s board of directors has withdrawn its recommendation to merge the company¹s Sally Beauty and BSG operations with Regis Corp. In a press release issued Wednesday evening, Alberto-Culver stated the board¹s decision considered Regis¹ two consecutive earnings short-fall announcements since the two companies entered into the merger agreement, significant revisions to Regis¹ financial forecasts, uncertainty about Regis’ fiscal 2007 outlook and differences in operating approaches.
Under the terms of the agreement, Regis has five business days to terminate the agreement or decide to ask the shareholders of the Alberto-Culver Co. to vote on the transaction.
[For the complete story, see tomorrow’s WWD]