SHARES in Ted Baker close up by more than 15 per cent tonight after the fashion retailer confirmed that it is the subject of possible takeover interest from a private equity firm.
In a statement to the stock market, Ted Baker noted an announcement by New York-based Sycamore Partners Management confirming that it is in the early stages of making a possible cash offer for the company.
Ted Baker said that it has not received any approach from Sycamore, and declared that it is making “good progress” on transformation plans that will see it emerge from Covid as a “stronger and more financially sustainable business”.
“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,” it added.
The statement from Ted Baker followed takeover speculation in the media on Thursday night.
New York-based Sycamore has investments in a range of consumer, distribution and retail businesses, including Staples. It has previously invested in upmarket footwear retailers Kurt Geiger and Nine West.
Analysts at Shore Capital questioned the share price level at which investors would consider a potential bid, pointing out that shares in Ted Baker had fallen 29% in the past year.
“Despite inflation set to squeeze discretionary spend, we see Ted Baker in a stronger position than other competitors, ready to capitalise on the ‘return to normal’ trends post-pandemic,” Shore added in a note to investors.
Shares in Ted Baker closed up 15.01p, or 15.2%, at 113.76p.
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