Sycamore Partners, which owns 9.9 percent of The Talbots Inc. stock, signed an agreement that gives it a peek at some of the retailer’s confidential information and also prevents it from boosting its stake in the company for the time being.
Last month, Sycamore offered to buy the shares of the struggling retailer that it doesn’t already own for $3 a piece, but Talbots rejected that price as too low and said it would explore strategic alternatives with the help of Perella Weinberg Partners. Since then, private equity investors and other retailers have been taking another look at Talbots ahead of an auction expected to start next month.
Sycamore, which signed the agreement Friday, agreed to a standstill period that could last as long as one year and prevents it from seeking to influence how other shareholders use their voting power or how Talbots’ management and board govern its affairs.
Talbots stock slipped 1.3 percent to $3.25 in early trading.
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The agreement was laid out in a filing with the Securities and Exchange Commission today.