Pier 1 withdraws bid to acquire Cost Plus

CHICAGO (Reuters) - Home furnishings retailer Pier 1 Imports Inc (PIR.N) said on Tuesday it had withdrawn its proposal to acquire rival Cost Plus Inc (CPWM.O).

Pier 1 said it was unlikely it would be able to acquire a majority interest in Cost Plus "at a price that would make sense for our shareholders."

Cost Plus had already rejected the $88.4 million all-stock deal earlier this month, calling it "ill-timed."

The June 6 offer had valued Cost Plus at about $4 per share, which at the time was a premium of 31 percent. Cost Plus shares closed Tuesday at $3.02.

Some analysts had given the proposed deal a thumbs down, too, saying it would distract Pier 1, which is in the process of turning its business around.

(Editing by Andre Grenon)