* Sycamore says intends to talk to Talbots management
* Shares up 18 pct
(Rewrites first paragraph to say that Sycamore co-founder is
considering the possibility of acquiring Talbots, according to
BANGALORE Aug 1 Private equity firm Sycamore
Partners' co-founder is considering the possibility of
acquiring women's clothing retailer Talbots Inc TLB.N, the
Wall Street Journal reported, citing people familiar with the
Sycamore Partners and Talbots did not immediately respond
to phone calls seeking comment.
Sycamore Partners, started by retail industry veteran
Stefan Kaluzny, reported a 9.90 percent stake in Talbots,
according to a filing with the U.S. Securities and Exchange
Shares of Talbots rose about 18 percent to close at $4.07
on Monday on the New York Stock Exchange.
Talbots, which built its image on its traditional
pearls-and-classics fashions, has seen its sales fall over the
past 5 years.
The company's shares have lost more than 80 percent of
their value over the same period, including about 60 percent
this year, and some investors have said it may soon be time for
a change in management, or even a sale, if things don't
Sycamore Partners said Talbot's stock was undervalued, and
it expects to talk to the retailer's management and other
shareholders regarding the company's operations and strategy,
among other things, according to the filing.
The stock trades at 1.7 times book value, 65 percent
cheaper than its peer group, according to Thomson Reuters
Sycamore and its affiliates become the second biggest
shareholders in Talbots, after OppenheimerFunds, which holds a
13.27 percent stake, according to Reuters data.
Kaluzny is a former Golden Gate Capital Managing director.
Kaluzny, who specialized in retail at Golden Gate, serves
as a director at a number of retailers including Zale Corp
ZLC.N, Apogee Retail and Eddie Bauer Inc [GOLGCU.UL]
(Reporting by Mihir Dalal in Bangalore, additional reporting
by Divya Sharma; Editing by Prem Udayabhanu, Saumyadeb
Chakrabarty and Carol Bishopric)