Shiseido offers $1.7 billion for US cosmetics firm Bare Escentuals

Japanese cosmetics company Shiseido said late on Thursday that it will take over US cosmetics firm Bare Escentuals for $1.7 billion.

Shiseido is offering $18.20 per share to buy all of Bare Escentuals' outstanding shares in a tender offer scheduled to open later this month. The price represents a 40.8% premium over Bare Escentuals' average closing stock price over the three-month period ended January 13 and a 39.9% premium over the closing price on January 13. Bare Escentuals has been listed on Nasdaq since 2006 when it raised $374 million in an initial public offering priced at $22.00 per share.

Shiseido's offer is conditional upon it securing a majority of Bare Escentuals' outstanding shares and...