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Kate Spade (KATE) stock was surging almost 10% to $21.57 in Thursday morning trading after confirming that it will review strategic alternatives amid reports that it's a takeover target

The company has hired Perella Weinberg Partners as its financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison as its legal counsel.

New York City-based Coach  (COH)  and London-based Michael Kors (KORS) are said to be interested in the luxury handbag maker. 

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Michael Kors CEO John Idol said on the company's recent earnings call that it has "the capacity to do sizable transactions or smaller transactions, but what we said to you in the past is that we probably won't do anything small."

Additionally, Kate Spade this morning reported fourth-quarter earnings a week earlier than scheduled.

The New York City-based retailer said adjusted earnings rose to 41 cents a share from 32 cents a share in the year-ago period, and topped analysts' estimates of 34 cents a share.

Revenue rose 9.8% year-over-year to $471 million, but missed the FactSet consensus of $472 million.