Kate Spade & Co (KATE) Confirms Takeover Rumors
Kate Spade & Co (NYSE: KATE ) has confirmed that it is looking into strategic alternatives.
Kate Spade & Co says that these strategic alternatives may result in a takeover of the company. However, it also warns that there may not be any transaction as a result of the effort. It also says that it won't be providing updates about the effort to investors until the appropriate time.
Kate Spade & Co says that Perella Weinberg Partners is acting as its financial advisor as it explores its strategic alternatives. The company's legal advice is coming from Paul, Weiss, Rifkind, Wharton & Garrison. KATE says it is looking for strategic alternatives that enhance shareholder value .
Kate Spade & Co's confirmation that it is looking into a takeover follow rumors earlier this week of just that. These rumors claim that there are at least six companies that have their eye on the fashion company. Michael Kors Holdings Ltd (NYSE: KORS ) is one of the company's that may want to acquire KATE, but it is refusing to comment on the rumors.
Kate Spade & Co's confirmation of the potential takeover rumors came in its earnings report for the fourth quarter of 2016. The company reported earnings per share of 41 cents and revenue of $470.84 million. For the same period in 2015, KATE reported earnings per share of 32 cents and revenue of $428.96 million. Wall Street was looking for earnings per share of 35 cents and revenue of $472.80 million during the fourth quarter of the year.
KATE stock was up 11% as of Thursday morning.
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