Ted Baker PLC (LSE:TED) confirmed in a statement this morning that it received two unsolicited non-binding proposals from private equity firm Sycamore Partners L.P. in relation to a possible cash offer for the company.
The first proposal was made on 18 March for 130p per share, which was rejected by the board.
A second and improved offer of 137.5p per share was made four days later, which was also rejected by the fashion company.
The London-listed company said it had reviewed both offers from the private equity firm and felt that they “significantly undervalued Ted Baker and failed to compensate shareholders for the significant upside that can be delivered”.
“It’s unsurprising that management’s not keen to give up the reins after a few difficult years. We’re finally starting to see some greens shoots from the group’s turnaround efforts now that formal occasions are back on the social calendar,” said Laura Hoy, equity analyst at Hargreaves Lansdown.
The company added that it is on the way to recovery following a turbulent period and that the board is focusing on delivering value “well in excess” of the offers made by the American firm.
It stressed that there is no certainty that a firm offer will be made, and that shareholders should take no action at this time.
Shares in the company are currently valued at 119.9p, down 5% in morning trading.