Talbots (TLB +2.9%) says the Pension Benefit Guaranty Corporation won't take action related to the retailer's acquisition by private-equity firm Sycamore Partners, following the two company's revision to their merger agreement on Friday. The new amendment deletes the financing proceeds as a condition to purchaser's tender offer to acquire all of the outstanding shares of the Company's common stock, and the PGBC's agreement paves the way for the deal to close.
Though Talbots (TLB) finally gets its deal to sell itself done, it's a bit of a stinger after the company rejected a $3-a-share offer in December as "inadequate" and saw a $3.05-a-share flyer go south just last month.
What now? After Sycamore Partners backed off a deal to purchase the company at $3.05 a share, Talbots (TLB -38.1%) faces the moment of truth - nobody wants to buy it. Focus Investment Banking's Abe Garver says the company has already talked to every potential buyer without any positive results, while the advertised turnaround isn't on track with 90 stores closures and falling comparable-store sales the lead stories.
Talbots (TLB) drops 23.1% in premarket trading after announcing that its exclusivity agreement with Sycamore Partners expired with no deal in place. The company says it's now seeking strategic alternatives. Also: FQ1 earnings.
Talbots (TLB +7.7%) pops higher as word breaks that the company has extended again its exclusivity agreement with Sycamore Partners, this time to May 24. Shares of TLB are now trading hands at $2.50 a pop - still well-below the $3.05 offer price Sycamore has on the table.
More on the Talbots (TLB) buyout offer: Perella Weinberg Partners hired to evaluate the bid and other strategic alternatives in a move that could signal that the company is likely to reject the deal with its narrow premium. Shares +1.8% premarket.
Talbots (TLB) -7.3% AH after reporting a Q4 EPS loss of $0.77 vs. a $0.04 loss in the year-ago period and missing the consensus of a $0.51 loss. Revenues fell 1.1% Y/Y to $2894M, beating the $269M, but Q1 revenue is guided lower to ~$272M vs. $284M consensus.
The Talbots, Inc., a Delaware corporation, together with its wholly owned subsidiaries, is a specialty retailer and direct marketer of women’s apparel, shoes, and accessories. We operate stores in the United States and Canada. In addition, our customers may shop online or via our catalogs.