In what is probably just a sign of how badly managed the company has been, The Talbots Inc. (NYSE: TLB) agreed today to a $2.75/share buyout by private equity group Sycamore Partners. Talbots turned down an offer of $3/share in January, and just last Friday Sycamore walked away from a sweetened offer of $3.05/share.
But even at $2.75/share, that’s a premium of more than 100% to Talbots’ closing price last night of $1.29. The total value of the deal, including Sycamore’s assumption of Talbots’ debt, is about $369 million.
Some people at Talbots must have had an epiphany since last week. Something along the lines of “We must have been delirious to let Sycamore get away.” So the private equity firm got a 10% discount and Talbots shareholders were treated to a last hurrah from the company’s awful management team.
Shares are up about 89% today, at $2.44, in a 52-week range of $1.29-$10.40.
Paul Ausick
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.