Recasts; adds Adrenalina CEO's comments)
By Shivani Singh
BANGALORE, Oct 29 (Reuters) - Adrenalina (AENA.OB: Quote, Profile, Research, Stock Buzz) said it may take its buyout proposal for rival athletic-clothing retailer Pacific Sunwear of California Inc (PSUN.O: Quote, Profile, Research, Stock Buzz) directly to the company's shareholders, after PacSun rejected a sweetened buyout offer of $5 a share.
"We believe the PacSun board of directors has rejected our acquisition proposal hastily and without full consideration," Adrenalina Chief Executive Ilia Lekach said in an email to Reuters.
"Therefore, our next option is to present our proposal directly to PacSun's shareholders at a shareholders meeting," Lekach said.
PacSun was not immediately available for comment.
Adrenalina had earlier on Wednesday raised its offer to buy its larger rival by more than 11 percent, about a week after its previous offer of $4.50 per share in cash and stock was rejected.
Miami-based Adrenalina's latest offer valued PacSun at about $329 million, and is 67 percent more than PacSun's stock closing price of $3.00 on Tuesday. The struggling teen retailer's shares had hit a 52-week low of $2.54 earlier that day.
PacSun's shares closed up 6 percent at $3.18 Wednesday on the Nasdaq.
PacSun's shares had declined 20 percent in value since the day prior to Adrenalina's original offer, Adrenalina's Lekach had said in a statement announcing the latest bid.
Adrenalina said it has identified "strategic partners, wealthy individuals and institutional investors" ready to provide funding for the deal. (Additional reporting by Nivedita Bhattacharjee; Editing by Pratish Narayanan)
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