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Ted Baker Declines Sycamore’s Takeover Offers

 |  March 28, 2022

British fashion retailer Ted Baker has rebuffed two takeover offers from private equity investor Sycamore Partners Management, saying the proposals greatly undervalue the company, Reuters reported Monday (March 28).

The retailer said the offerings from Sycamore did not “compensate shareholders for the significant upside that can be delivered by Ted Baker as a listed company,” the report stated. The company recently underwent extensive changes of management, with efforts to improve the company’s outlook following the COVID19 pandemic appearing to take root.

The overtures from Sycamore come at a time of heightened interest in British companies amid declining valuations in the wake of the pandemic and the U.K.’s post-Brexit misfortunes. Ted Baker was

Sycamore Partners management, a New York-based private equity firm specializing in retail and consumer-oriented investments, was founded in 2011. Its investments include other fashion retail and designer brands. The firm confirmed its intentions to bid for the British retailer this month, sending Ted Baker shares soaring by 43 per cent in two weeks.

Last week, Ryan Cohen, Chewy founder, Gamestop chairman and RC Ventures activist, was able to place three board members on Bed, Bath & Beyond, where he controls a 9.5% stake.

Meanwhile, there’s the saga of Kohl’s, which has said no to multiple outside offers and investor reorganization demands this year that have attempted to break the company into pieces, bring in new directors or simply buy it out entirely for as high as $9 billion.

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