Breeden continues building stake in jeweler Zale

WASHINGTON, Jan 7 (Reuters) - Activist investor Richard Breeden has further built up his stake in U.S. jeweler Zale Corp (ZLC.N: Quote, Profile, Research, Stock Buzz) to 15.85 percent through additional open market buys, according to a regulatory filing on Monday.

Breeden, previously chairman of the U.S. Securities and Exchange Commission, disclosed in a filing with the U.S. Securities and Exchange Commission that he bought 339,449 shares on Jan. 2 for about $16.21 each. His prior stake was 15.09 percent.

Breeden's holdings constitute an active stake, and the investor has said in previous filings that he believes the stock is undervalued. He has said he may in the future try to initiate a major transaction at the company.

Shapiro Capital Management, an Atlanta-based asset management firm, reported on Friday that its passive sake in Zale has increased to 15.78 percent, or 7.04 million shares, from 14 percent.

Shares of Zale were up 4.6 percent, or 62 cents, to $14.18 during morning trading on the New York Stock Exchange on Monday.

Zale is in the process of streamlining its business to increase its core mall-based sales. The jeweler also recently named Neal Goldberg, a retail veteran and a recent president of Children's Place Retail Stores Inc, as its chief executive on Dec. 20.

(Reporting by Karey Wutkowski, editing by Dave Zimmerman)

((Reuters Messaging: karey.wutkowski.reuters.com@reuters.net; E-mail:karey.wutkowski@reuters.com +1 202 898 8399)) Keywords: BREEDEN ZALE/

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