May 9 Zale Corp shareholder TIG Advisors LLC opposed the jeweler's proposed merger with Signet Jewelers Ltd, calling the $21 million offer inadequate and unfair to Zale stockholders.
Zale shares rose as much as 4.2 percent to $22.08 on the New York Stock Exchange in late trading on Friday. The stock has mostly traded above $21 since Signet's offer.
Signet, the parent of Kay Jewelers, said in February it would buy the smaller rival for about $690 million - a premium of 41 percent at that time.
"The $1.4 billion increase in Signet's market capitalization on the date of the acquisition announcement compares to a $286 million premium paid for Zale shares," TIG said in a presentation filed with the Securities and Exchange Comission.
TIG, which owns about 9.5 percent in Zale, called upon Zale shareholders to vote against the merger at an upcoming meeting on May 29. (Reporting by Shailaja Sharma in Bangalore; Editing by Joyjeet Das)