The Talbots, Inc. Investor Investigation Over Takeover Proposal

If you purchased shares of The Talbots, Inc. (NYSE:TLB) shares prior to the announcement, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Talbots Inc.
Affected Securities: 
NYSE: TLB

Update (May 31, 2012) -- On May 31, 2012, The Talbots, Inc. and Sycamore Partners today announced that they have entered into a definitive agreement pursuant to which an affiliate of Sycamore Partners will acquire all the outstanding common stock of the Company for $2.75 per share in cash.

On May 15, 2012, The Talbots, Inc. had announced that the exclusivity period will expire on May 22, 2012 and on May 23, The Talbots, Inc. announced that the exclusivity period will expire on May 24, 2012.

On May 24, 2012, NYSE:TLB shares fell from $2.56 per share to $1.29 per share on May 30, 2012.

Update (May 17, 2012) -- On May 7, 2012, The Talbots, Inc. (NYSE:TLB) announced that its Board of Directors has received a non-binding proposal from Sycamore Partners to acquire all of the Company's outstanding common stock for $3.05 per share. In addition, The Talbots, Inc said that the Company has entered into an exclusivity agreement with Sycamore Partners in connection with the non-binding proposal, which will terminate on May 15, 2012.

Update (Dec.20, 2011) -- On December 20, 2010 the Talbots, Inc. (NYSE:TLB) announced that it responded to the unsolicited proposal received on December 6, 2011 from Sycamore Partners to acquire all of Talbots outstanding shares of common stock at a price of $3.00 per share. The Talbots said that it had considered and evaluated the terms of the proposed transaction and had concluded that the proposal was inadequate and substantially undervalues the Company.

San Diego, Dec. 6, 2011 (Shareholders Foundation) -- The proposal to take over The Talbots, Inc. at $3.00 per share by Sycamore Partners caused an investigation on behalf of investors of The Talbots, Inc. (NYSE:TLB) concerning whether a potential takeover would be unfair for NYSE: TLB stockholders and whether certain Talbots directors breach their fiduciary duties in the event of an acquisition.

The investigation by a law firm is at a preliminary stage and monitors a possible takeover. It concerns whether The Talbots, certain of its officers and directors, and/or others breach their fiduciary duties owed to The Talbots, Inc. (NYSE TLB) investors in connection with the takeover rumors or in the event of a takeover.

On December 6, 2011, the Talbots, Inc. announced that its Board of Directors has received an unsolicited letter, dated December 6, 2011, from Sycamore Partners outlining a non-binding proposal to acquire all of the Company's outstanding common stock for $3.00 per share.

Following the proposed takeover Shares of Talbots, Inc. (Public, NYSE:TLB) jumped from a close of $1.56 on Dec. 6, 2011 to $2.64 per share on December 7.

However, NYSE:TLB stocks traded as recently as September 20, 2011 at $3.25 per share and in August as high as $4.07 per share, thus above the offer. Further, at least one analyst has set the high target price for TLB stocks at $4 per share.

In addition, NYSE TLB stocks traded earlier this year at $6.50 in April and $7.50 in January. During 2010 TLB shares traded even as high as almost $17 per share.

Therefore the investigation by a law firm questions whether the potential sale process and the price would be unfair to the shareholders of Talbots (TLB). The investigation focuses whether the Talbots board of directors will undertake an adequate a fair sales process to obtain fair consideration for all shareholders of The Talbots, Inc. (NYSE:TLB) and will breach their fiduciary duties to The Talbots shareholder by failing to adequately shop the Company before entering into any transaction. The investigation concerns also whether Sycamore Partners would underpay for NYSE:TLB shares, thus unlawfully harming The Talbots (TLB) investors.

Despite recenet stock trading prices above the current offer, Talbots’ performance increased over the recent years. While The Talbots’ 52week Revenue decreased from $1.7billion for a 52weeks period ending on Feb. 2, 2008 to $1.21billion for a 52weeks period ending on Jan. 29, 2011, its was able to pull out of a Net Loss of $188.84million for the 52weeks period ending on Feb. 2, 2008, respectively a Net Loss of $555.66million for the 52weeks period ending on Jan. 31, 2009, and report a Net Income for the 52weeks period ending on Jan. 29, 2011.

A potential class action lawsuit would seek to maximize the amount of money and information Talbots, Inc. shareholders would receive in a buyout, so the law firm.