US retailer Talbots receives a sweeter offer from Sycamore
WOMEN’S clothing retailer Talbots, which had opened its books to Sycamore Partners in January, received a raised takeover offer of $214.6m (£132m) from the private equity firm yesterday.
Talbots said Sycamore had offered to pay $3.05 per share — slightly higher than the $3.00 per share, or $212m, it offered in December.
But Talbots shares fell 6.1 per cent to $2.61, as investors hoping for a better offer lost heart. Talbots opened its books to Sycamore in January, shopping for a higher bid after spurning the firm’s initial offer.
“The board continues to evaluate strategic alternatives, including Sycamore Partners’ proposal,” Talbots said in a statement yesterday.
The company, which has struggled with falling sales and margins, entered an exclusivity agreement with Sycamore, which will end on 15 May.