A new spate of unconfirmed rumors around a possible bid by Nike for Puma pushed the latter’s share price to a record of €260 last week, raising its market capitalization to an all-time high of €4.21 billion (=$5 billion). Mayfair subsequently denied any intention to sell its stake of 25.3 percent to Nike, and the share price then declined to around €256. It settled down this morning at €251 in spite of new analysts’ reports by Credit Suisse First Boston and Westdeutsche Landesbank that projected the share’s potential at €299-300.
Meanwhile, Puma has announced that it has formed a new joint venture in Turkey with ACK, which has handled the distribution of the brand in the country for the past seven years. Puma had already become ACK’s majority shareholder last April. Run by Cemal Bylgyngullüodlu, the new Turkish firm is called Puma Spor Giyim Sananyi ve Tricaret AS.
Meanwhile, the start of the 2006 African Cup of Nations in Egypt coincides with the launch of Puma’s innovative new v1.06 football playing kit, which will be worn by all the 12 teams sponsored by the brand during the World Cup. It became available in Puma concept stores and other selected shops last Saturday. The shirt uses a new tear-resistant fabric with limited stretch, preventing competitors from grabbing it. The stitchless welded seamed jersey’s raised front collar keeps the wind from coming in. The shorts have a raised hem in front to reduce friction and to support forward movement.
Puma has also announced a charitable partnership with United for Africa, which sponsors more than 5,000 projects throughout the African continent, using funds generated by the proceeds from certain special programs that will be launched in Puma concept stores and other stores this summer.
In other company news, Puma has appointed Magda Berliner as the new creative director for its Nuala line of yoga-inspired women’s clothing, starting with the Fall/Winter 2006/07 collection, which will also be available online.
