// Ted Baker rejects two takeover proposals from American private equity firm Sycamore Partners
// The retailer said Sycamore made an offer of 130 pence for each Ted Baker share on 18 March and submitted a revised proposal of 137.5 pence for each share on 22 March
Ted Baker has confirmed that it has received and rejected two unsolicited non-binding takeover proposals from private equity firm Sycamore Partners for a takeover of the clothing brand.
The retailer said that the rejection was due to the fact that it “significantly undervalued” the company.
Ted Baker said it received the proposals on March 18 and March 22 worth 130 pence and 137.5 pence, respectively. The latest offer values the company at £253.8m.
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“The board of Ted Baker carefully reviewed both of Sycamore’s proposals with its advisers and concluded they significantly undervalued Ted Baker and failed to compensate shareholders for the significant upside that can be delivered by Ted Baker as a listed company,” it said.
“Ted Baker is a leading global brand with a strong future. The management actions taken over the last two years have put the business on a firm footing and it is now well on the way to recovery following a turbulent period. The board is focused on delivering value for Ted Baker’s shareholders well in excess of the price offered by Sycamore.”
On 18 March, the American private equity firm said it was in the early stages of considering making a possible cash offer for Ted Baker.
It has a deadline of 15 April to either make a firm offer, or walk away under UK Takeover Panel rules.