NEW YORK (TheStreet) -- Shares of Talbots (TLB) soared in extended action late Tuesday on news that buyout firm Sycamore Partners has offered to acquire the struggling retailer for nearly double the stock's closing price.
In a regulatory filing after the closing bell, Sycamore Partners said it has sent a letter to Talbots Chairman Gary Pfeiffer that offers to purchase all of the company's outstanding stock for $3 per share in cash.
Talbots' shares finished Tuesday's regular session at $1.56, so the bid represents a premium of 92%. The stock hasn't closed above $3 since late September.
Sycamore Partners, which is based in New York, currently has a 9.9% stake in Talbots, owning roughly 7 million shares, according to Thomson Reuters. In the filing, Sycamore, which invests in consumer and retail companies, also said it's prepared "to pursue any and all actions available to it in order to ensure that the Issuer's board actively and thoughtfully explores strategic alternatives, including Sycamore's proposal."Talbots' shares were last quoted at $2.67, up 71%, on after-hours volume of nearly 400,000, according to Nasdaq.com. It's already been a busy week for Talbots, which announced Monday that it's started a search for a successor to Trudy Sullivan, its president and CEO. Earlier in the month, the Hingham, Mass.-based women's apparel retailer reported a wider than expected loss for its fiscal third quarter ended in October. Talbots posted an adjusted loss from continuing operations of $15.5 million, or 22 cents a share, for the quarter on sales of $279.5 million. --Written by Michael Baron in New York.
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