Ted Baker has rejected the approaches of US private equity giant Sycamore, as it backed its post-pandemic strategy over the offer on the table.
The retailer said it rejected a 137.5p-per-share bid last Tuesday, just days after it had refused a a lower 130p bid.
Even the higher bid, worth around £254 million, undervalues Ted Baker, whose shares were trading as high as 2,500p just four years ago.
The company said: "The board of Ted Baker carefully reviewed both of Sycamore's proposals with its advisers and concluded they significantly undervalued Ted Baker and failed to compensate shareholders for the significant upside that can be delivered by Ted Baker as a listed company.
"Ted Baker is a leading global brand with a strong future. The management actions taken over the last two years have put the business on a firm footing and it is now well on the way to recovery following a turbulent period.
"The board is focused on delivering value for Ted Baker's shareholders well in excess of the price offered by Sycamore."
Hargreaves Lansdown equity analyst Laura Hoy said: "It's unsurprising that management's not keen to give up the reins after a few difficult years.
"We're finally starting to see some greens shoots from the group's turnaround efforts now that formal occasions are back on the social calendar.
"However there's still a bumpy road ahead, with inflation weighing on customers' willingness to shell out for a new outfit.
"Ted's prices are on the higher end of the spectrum, but not quite reaching into luxury, meaning its customers won't be immune to the cost-of-living squeeze and could start to slide down the value chain."
Ayrshire dentist in family ownership for 50 years is sold
AN Ayrshire dental practice which has been in family ownership for 50 years has been bought by the fast-expanding Clyde Munro group.
Maybole Dental Practice, a predominantly National Health Service, four-surgery practice with more than 9500 patients is owned by David Logan.
Landmark for Royal Bank of Scotland
UK taxpayers’ stake in NatWest Group, owner of Royal Bank of Scotland, has been cut to below 50 per cent for the first time since the financial crisis of more than a decade ago.
The bank announced this morning that it has acquired 549,851,147 ordinary shares from the Treasury for £1.2 billion via a directed buyback.
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