Skullcandy Decides Mill Road's Buyout Bid Is Better Than Incipio Merger Deal

Skullcandy Inc. said Friday that it determined that Mill Road Capital Management's $6.05 a share buyout bid for the headphone maker was superior to the one from Incipio LLC. Skullcandy has told Incipio that it intends to terminate the merger agreement; Incipio has until 11:59 p.m. ET on Aug. 2 to respond with another proposal. Skullcandy received Mill Road's cash bid on Monday, which was above Incipio's per-share bid of $5.75, just before the end of the agreed on go-shop period. Skullcandy's stock, which was still inactive in premarket trade, has soared 27% year to date, while the S&P 500 has gained 6.2%. At Thursday's closing price of $6.03, Skullcandy's market capitalization was $173.1 million, according to FactSet.