Orlando, FL 5/25/12 (StreetBeat) -- Shares of Talbots (NYSE:TLB) were sinking more than 35%, to $1.66 in morning trading after the apparel retailer said its exclusivity deal with Sycamore Partners expired without a takeover agreement.
Earlier this month the private equity firm had sweetened its bid, valuing Talbots around $215 million or $3.05 a share. However, after two extensions, Sycamore said it wasn’t prepared to go through with the takeover; Talbot says it is still open to discussion, but is also seeking alternatives.
The scuttled deal overshadowed the company’s better-than-expected first-quarter earningsreport. Talbots says it earned $1.1 million, or 2 cents a share, up from $739,000, or a penny a share, in the year-ago period. Adjusted profit rose to 9 cents a share from 8 cents a share. Sales fell to $276 million from $301.3 million. Analysts expected the company to lose 2 cents a share on sales of $272.5 million.
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