Gildan Proxy Costs Surge to Disney Levels as Activist Triumphs
- The fight cost shareholders $65 million, CEO Chamandy says
- Company plans to tap the bond market for funding in future
Glenn Chamandy, chief executive officer of Gildan Activewear Inc., during a news conference in Montreal on Tuesday.
Photographer: Graham Hughes/BloombergThe proxy fight at Gildan Activewear Inc. cost the company $65 million including severance and legal expenses, its chief executive officer said, putting it in the same league as Walt Disney Co.’s battle with Nelson Peltz.
The five-month scrap between Gildan’s board and investment firm Browning West LP ended last week with the resignation of the entire board, including then-CEO Vince Tyra. Investors supported dissident shareholder Browning in its quest to install eight of its own board candidates and bring back longtime CEO Glenn Chamandy, who’d been fired in December.