Sycamore Partners finally buys Talbots at reduced $369 mln

After two hectic weeks and a withdraw announcement by suitor Sycamore Partners (second largest shareholder up to the acquisition), Talbots has agreed to be bought by the private-equity firm for a reduced price of $369 million, including debt.

Shareholders will get $2.75 per share, the retailer said Thursday. The offer is lower than Sycamore's previous offer of $3.05 per share and more than more than double Wednesday's closing price of $1.29. The stock jumped as high as $2.59 in New York, reported Bloomberg.

Talbots accepted the lower bid after last week saying it had failed to reach an agreement with Sycamore during 2 1/2 weeks of exclusive talks. The retailer, established in 1947, has closed 90 locations since March 2011, posted five consecutive years of sinking sales and has yet to name a replacement for retiring Chief Executive Officer Trudy Sullivan.

Talbots rejected a $212 million buyout proposal from Sycamore in December but allowed the private equity firm to look at its books in January as its business continued to deteriorate, stressed Reuters.

Following months of discussions, Sycamore raised its offer to $214.6 million in early May but Talbots announced on 28th May that the talks had ended without a merger agreement, which sent its shares plunging 41 percent.