19 Retail Takeovers: Rumors Run Rampant
Children's Place (PLCE) is being pushed by an investor to consider a merger or other strategic alternatives.
Galt Investment Partner wrote a letter to the children's retailer on Friday saying that while overall it's pleased with the performance of the company, it is concerned that the board is missing "significant opportunities to generate shareholder value, including through a value-maximizing business combination transaction."
Of course, the recent takeover of rival Gymboree, and Berkshire Partners increasing interest in Carter's (CRI), were no doubt catalysts to Galt's letter.Galt said that a merger of any combination of the three children's retailers could result in savings of $50 million or more annually. The firm also predicted that based on the price being paid by Bain for Gymboree and the valuation of Carter's, Children's Place could be worth about 45% to 51% more than its current share price of $47.52. Galt suggests Children's Place hire a financial advisory firm and urged the board to consider a merger with Gymboree or Carter's.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV