Sun Offer Lights Up Kellwood Shares
Shares of
Kellwood
(KWD)
soared 28% Wednesday after the clothing maker disclosed a buyout offer from
private-equity firm Sun Capital Securities.
Sun is offering $21 a share for Kellwood, representing a 38% premium over the stock's closing price Tuesday. Kellwood said the proposal is subject to a number of conditions, including the completion of due diligence.
The company plans to evaluate the bid, as well as other alternatives available.
Kellwood, which makes clothing under brands such as Phat Farm, Sag Harbor and Wenzel, has been hit by fears of a consumer spending slowdown and declining mall traffic. Earlier this month, the company lowered its profit forecast for 2007 and announced a reorganization of its women's sportswear business.
On Tuesday, shares hit a 52-week low of $14.21. The stock traded at a 52-week high of $34.84 in December.
Shares of Kellwood recently were up $4.28 to $19.45.