Skullcandy, Inc. (NASDAQ: SKUL) is watching its shares make a handy gain in Monday’s session after the company received an unsolicited acquisition proposal. The company announced that last Friday its board of directors received an unsolicited proposal from Mill Road Capital to acquire all of the outstanding shares of Skullcandy common stock.

Previously, Skullcandy announced that it had entered into a merger agreement with Incipio LLC on June 23, 2016. Accordingly, Incipio would acquire all of the outstanding shares of Skullcandy common stock for $5.75 per share in cash, or a total of approximately $177 million.

However, the merger agreement provides for a “go-shop” period until July 23, 2016, during which time Skullcandy’s board of directors, together with its financial advisors, are actively soliciting alternative proposals from third parties to acquire Skullcandy. While soliciting alternative proposals to the transaction with Incipio, both companies are continuing to work towards completion of their transaction in the event that no superior transaction materializes.

Mill Road Capital made an offer of $6.05 per share in cash, which would value the entire transaction at roughly $186 million.

The ball is in Skullcandy’s court, and it is now up to the board of directors to decide which option to go with.

So far in 2016 the stock is up over 20%, excluding Monday’s move. Over the past 52-weeks the stock is actually down 28%.

Shares of Skullcandy were last trading up over 5% at $6.07, with a consensus analyst price target of $5.92 and a 52-week trading range of $2.75 to $8.27.

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