Skullcandy announced yesterdat that its board of directors had accepted to negotiate a revised takeover offer at $6.35 a share by Mill Road Capital Management that values the American headphone producer at about $196 million. Meanwhile, another company, Incipio, extended an offer at $6.10 share for another two weeks. Incipio had initially offered to pay $5.75 a share and then raised the purchase price to $6.10. Mill Road then proposed $6.50 a share, hut then lowered the bid to $6.25, triggering its rejection by Skullcandy's board, partly in view of a $6.2 million break-up fee due to Incipio. The company reported earlier this month a loss of $1,574,000 for the second quarter, compared with a profit of $1,215,000 in the year-ago period, on flat revenues of $57.3 million. Sales went up by 4 percent in the U.S. but declined by 10 percent in the rest of the world, due in part to ongoing problems with the company's Chinese distributor.

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