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Playboy hires advisors on Hefner buyout bid

Hef offers $5.50 per share to take the business private.

Playboy Enterprises, owner of top-shelf magazine Playboy, has announced the appointment of financial and legal advisors to consider founder Hugh Hefner's offer to take the business private.

The company's special board committee to evaluate the offer, announced on Tuesday that it has retained Raine Securities and Kaye Scholer as its financial and legal advisors, respectively.

In July, Hefner had offered $5.50 per share in cash to buy all of Playboy's Class A and Class B common stock that he does not already own - valuing the business at $185m.

He currently owns 69.5 per cent of the company's Class A stock and 27.7 per cent of its Class B stock.

But Hefner's offer sparked a bidding war with FriendFinder Networks, the owners of Playboy's competitor Penthouse magazine.
Reports say it is not clear if the committee is evaluating FriendFinder's offer of $6.25 per share.