Children's clothing company Orchestra-Premaman SA boosted the cash component of its unsolicited offer to buy Destination Maternity Corp. after the maternity clothing maker turned down its previous proposal.

French company Orchestra-Premaman wrote in a letter that Destination Maternity's board has "consistently stalled and repeatedly resisted our efforts to commence a constructive dialogue regarding our proposal." Destination Maternity didn't immediately comment on the revised offer, though it has previously said holding talks regarding a potential acquisition wasn't in the best interests of its shareholders.

With its revised offer, Orchestra-Premaman kept the value roughly the same, at around $125 million, but raised the cash component of the deal. It is now offering $2.6664 in cash and 0.0596 of an Orchestra-Premaman share in exchange for every Destination Maternity share. It had previously offered $1.8035 in cash and 0.0665 share. The new deal is about 29% cash, compared with about 20% cash in the previous offer.

Destination Maternity's shares, down 2.4% in the last three months and down 24% this year, were up 2.3% in recent trading.

In its letter, Orchestra-Premaman responded to a number of concerns Destination Maternity had previously raised about the offer, including the closely held nature of Orchestra-Premaman, its listing on the Euronext Paris stock exchange and its lack of operations in the U.S.

Orchestra-Premaman said it would change its primarily listing to either the Nasdaq or the New York Stock Exchange and that the new shares issued as part of the deal would enlarge the number of shares outstanding. Pierre Mestre, Orchestra-Premaman's chairman, said his family's control of the company represents the vast majority of his assets and that this helps ensure it is managed with "proper care, diligence and competence."

The letter also said there would be cost synergies and that the combined company would benefit from selling maternity clothes throughout Orchestra-Premaman's stores.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

February 08, 2016 11:05 ET (16:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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