Kate Spade Rises, Hedge Fund Urges Co. to Seek Sale
Caerus Investors urged Kate Spade to seek a sale, sending the stock higher.
Shares of Kate Spade (KATE) were up sharply Monday after the company received a letter from hedge fund Caerus Investors urging the company to seek a sale. "Given the market's lack of faith in the current management team, as evidenced by the 63% decline in the shares since the intraday high on August 11th, 2014, we believe the best path for enhancing shareholder value is to pursue a sale of the company," the letter read Caerus has been invested in the Kate Spade brand since 2009 when it under the umbrella of former parent company Liz Claiborne and argued for a breakup of that company which occured in 2013.
