(Reuters) -Canadian apparel maker Gildan Activewear (NYSE:GIL) said on Sunday it has learned that activist fund Browning West's purchase of Gildan shares last month violated the U.S. anti-trust laws.
Gildan has alleged the move was an "illegal" attempt by the U.S.-based fund to reappoint former Chief Executive Glenn Chamandy and eventually take control of the company's board.
It added Browning violated the U.S. anti-trust law by not notifying the U.S. Federal Trade Commission and U.S. Department of Justice about the acquisition of voting securities and failed to comply with the mandatory 30-day waiting period under the United States Hart-Scott-Rodino Antitrust Improvements Act (HSR Act).
"It (Browning West) informed Gildan it did not breach the HSR Act because the firm is exempt from filing and waiting period requirements," a spokesperson for Browning West said on Monday.
Under Canadian laws, shareholders can request a special meeting of all shareholders only if they hold more than 5% of stake.
"Browning West's share acquisitions barely put it over this threshold," Gildan said in a statement.
The statement comes after it said Chamandy failed to disclose ties with shareholder, adding that it appears that the former CEO and co-founder treated Browning West differently than other shareholders.
Browning West, in a separate statement, termed Gildan's accusations as an attempt to deprive shareholders of an opportunity to reconstitute the board at a validly requisitioned special meeting.
Earlier this month, Browning West escalated its fight with the Gildan board to reinstate Chamandy by seeking to replace a majority of members and requested a special meeting to reconstitute the board.