Ted Baker's thumbs down on takeover offer
- Richard Collings, author of Axios Pro: Retail Deals

Illustration: Megan Robinson/Axios
British apparel brand Ted Baker (LSE: TED) said it rejected two unsolicited proposals from PE firm Sycamore Partners because they both significantly undervalued the company.
- The company's shares were down about 2.5% in afternoon trading today.
Why it's the BFD: Any time Sycamore makes a play for a retailer it's news, given its reputation for hard-charging turnarounds of struggling consumer brands.
Details: On March 18 the PE firm made its first offer of 130 pence (GBP 1.30), valuing the company at £250 million.
- After Ted Baker turned it down, Sycamore came back with a second offer of 137.5 pence (GBP 1.375).
- Sycamore is working with investment bank Numis, according to Sky News, which first reported Sycamore's interest.
- Sycamore is also weighing bids for Boots and Kohl's.
What they're saying: "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 company said.
The bottom line: Ted Baker's board said it believes the company has a plan that will achieve a higher share price than what Sycamore is offering.
- Buckle up. Sycamore doesn't take "No" very easily for an answer.