Talbots Signs Pact With Sycamore (TLB)

The Talbots, Inc. (NYSE: TLB) is trading higher.  Maybe it will result in a buyout or maybe it will end up as a closed activist pact.  A noted this morning from an SEC Filing shows an effective date of January 27, 2012 (last Friday) between Sycamore and Talbots of a Confidentiality Agreement.

Item 4 and Item 6 are highlighted as the points.

4. Non-Disclosure of Existence of Negotiations.  Without the prior written consent of the Company or except as may be required by applicable law or regulation, the Receiving Party and its Representatives shall not disclose to any person that any discussions or negotiations are taking place between the parties concerning a possible Transaction, including the content, timing and status of such discussions or negotiations (the “Discussion Information”).

6. Standstill Agreement.  In consideration of the Confidential Information being furnished to the Receiving Party pursuant to this Agreement, the Receiving Party agrees that, for a period of one year from the date of this Agreement (or, such shorter period agreed to by the Company with a third party who is provided access to the Confidential Information for the purpose of evaluating a possible Transaction, the “Standstill Period”), unless expressly requested by the Company or its Board of Directors (or any committee thereof) in writing, the Receiving Party shall not (and shall cause its affiliates not to and shall cause its and their respective Representatives acting at its and their respective behalf not to): (a) in any manner acting alone or in concert with others, acquire, agree to acquire or make any proposal to acquire, directly or indirectly, by means of purchase, merger, business combination or in any other manner, beneficial ownership of any securities of the Company, direct or indirect rights to acquire any securities of the Company (including any derivative securities with economic equivalents of ownership of any of such securities), any right to vote or to direct the voting of any securities of the Company or any assets of the Company, (b) make, or in any way participate in, directly or indirectly,  any “solicitation” of “proxies” (as such terms are used in the proxy rules of the Securities and Exchange Commission) or consents to vote, or seek to advise or influence any person with respect to the voting of……….

Talbots is up 4% at $3.42, and the 52-week range is $1.46 to $10.40.

The full SEC Filing is here.