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19 Retail Takeovers: Rumors Run Rampant

Children's Place

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.

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