Shares of clothing retailer Kellwood Company soared 26% to $19.14 Wednesday and tacked on another 3% after hours following news that Sun Capital Securities Group LLC has offered to acquire the company for $21 per share, or approximately $542.7 million. The offer represents a 38% premium over Kellwood's Tuesday close -- the day on which the shares hit a 52-week low of $14.21. Sun Capital is a private equity firm with about $10 billion under management. Kellwood manufactures clothes under brands including Sag Harbor, Phat Farm and Wenzel. Its board, which did not solicit the offer, said it will consider it as well as other strategic alternatives. Earlier in September, the company lowered its earnings guidance for 2007 on concerns about a slowdown in consumer spending and a decline in mall traffic.
Sources: Reuters, AP, TheStreet.com, bizjournals.com
Commentary: Kellwood Company: A Share Price in Tatters • Kellwood Company: Sun Capital Discloses 8% Stake
Stocks/ETFs to watch: KWD. Competitors: JNY, LIZ, RL. ETFs: PEZ, FXD
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