MARTHA BUYOUT REVOLT

Activist speaks up

An activist investor in Martha Stewart’s company has surfaced, banging the table for a higher buyout price.

Plymouth Lane Capital Management disclosed an 11 percent stake in Martha Stewart Living Omnimedia on Friday, and prodded the company in a securities filing to mount a “robust marketing process” to find a superior bid to its $353 million acquisition by Sequential Brands.

Nevertheless, insiders said it’s unclear whether the domestic diva’s licensing empire can attract a substantially higher bid, given Sequential’s strategic advantages in the licensing niche.

Martha Stewart said this week its deal with Sequential — a New Yorkbased firm that owns labels like Ellen Tracy, Jessica Simpson and the Franklin Mint — contains a “goshop” period that invites rival bids for 30 days.

As reported by The Post, the deal’s Monday announcement has attracted at least five fresh suitors, including Meredith Corp., the publisher of Martha Stewart’s magazine titles.

Iconix, a rival licensing group to Sequential, is also in the mix, as well as Authentic Brands, which scooped Frederick’s of Hollywood out of bankruptcy earlier this month, sources said.

“The company’s been shopped, and there was heavy negotiation that took place over several months,” according to one source.

Still, some said the en trance of Meredith could pose serious risks to the current deal. Sequential’s bid was based on Martha Stewart’s “strategic value” on a licensing platform, one insider noted.

“Someone in the magazine and licensing business may value it differently,” the source said.

Word of Sequential’s takeover bid was reported in the Wall Street Journal last week ahead of the announcement. The news sent shares of Martha Stewart Living Omnimedia soaring as high as $7, forcing Sequential to include the “goshop” provision before officially announcing its $6.15 ashare offer Monday.

In an embarrassing twist, insiders told The Post that it was Sequential CEO Yehuda Shmidman who leaked the news, wreaking havoc on his own bid.

Separately, Martha Stewart has agreed to a new fiveyear contract to remain the chief creative officer of her company once it’s acquired by Sequential, according to a securities filing this week.

The deal gives her the same $1.8 million base compensation she was pulling down in her last two years at the company, plus a $100,000 expense account, as well as first class travel, hotel accommodations and hair and makeup services.

Her big upside will be how fast Sequential is able to grow her licensing operations. She will get 10 percent of gross licensing revenues earned by the company in excess of $46 million.