Talbots (NYSE: TLB) Stock Doubles after Buyout Announcement

Orlando, FL 5/31/12 (StreetBeat) -- Private equity firm Sycamore Partners will buy Talbots (NYSE:TLB) for $2.75 per share, a 30-cent discount to its initial offer for the retailer, Talbots said today. Talbots stock doubled on the news.

Sycamore’s initial buyout offer was for $3.05, but it withdrew the offer on May 25.

The new cash deal is worth $369 million.

“The purchase price represents a 113% premium to the closing price on May 30, 2012 and a 76% premium to the closing price on December 6, 2011, the closing price prior to the public disclosure of Sycamore’s initial proposal to acquire the Company,” Talbots said in a statement.

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Talbots (NYSE: TLB) Sinks 35% As Sycamore Buyout Falls Through

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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