Talbots rises on possible private equity interest

Stock Market Predictions

(Global Markets) - Shares of Talbots Inc (TLB.N) rose as much as 22 percent after CNBC reported that two private equity firms are weighing offers for the struggling women's apparel retailer.

Talbots' advisor -- Perella Weinberg -- has started actively soliciting bids for the company, and Golden Gate Capital, which is active in the retail sector, is considering a bid, a source familiar with the matter told Global Markets.

Golden Gate and TPG Capital are among the firms weighing bids for Talbots, CNBC reported earlier in the day.

In December, Talbots said it would look at its options after rejecting a $3-per-share offer from private equity firm Sycamore Partners -- also its largest shareholder with a 9.9 percent stake.

Sycamore is headed by Stefan Kaluzny, a former managing director at Golden Gate.

Talbots did not immediately reply to Global Markets' request for comment, but said in a statement that it will not comment on the market activity in its stock.

Golden Gate and TPG declined to comment when contacted by Global Markets.

The Hingham, Massachusetts-based retailer has been looking for a new chief executive to replace Trudy Sullivan, who unsuccessfully tried to revive the chain with new store formats, cost cuts and by chasing a younger clientele.

The company's shares were trading up about 19 percent at $3.19 on Friday on the New York Stock Exchange. They touched a high of $3.29 earlier.

(Reporting by Greg Roumeliotis in New York, Ranjita Ganesan and Mihir Dalal in Bangalore; Editing by Roshni Menon)