US PE firm Sycamore considering bid for Ted Baker

18th Mar 2022 07:35

(Sharecast News) - Shares of Ted Baker surged on Friday after US private equity firm Sycamore Partners confirmed it is in the early stages of considering a possible cash offer for the London-listed fashion retailer.

In a brief statement responding to press speculation, Sycamore said there can be no certainty that an offer will ultimately be made nor as to the terms on which any offer may be made.

Under UK takeover rules, Sycamore now has until 1700 GMT on 15 April to either announce a firm intention to make an offer or walk away.

At 0910 GMT, the shares were up 19% at 117.53p.

Ted Baker put out a statement saying that it had not received any approach from Sycamore .

"Ted Baker continues to make good progress with its transformation and the company is emerging from Covid as a stronger and more financially sustainable business," it said. "The board is confident in the company's independent prospects and would evaluate any offer for the company against the strong shareholder value creation that it believes can be delivered as a standalone company."

The company urged shareholders to take no action.