Reuters: Global Markets: Liz Claiborne shares soar on buyout report

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Liz Claiborne shares soar on buyout report Mar 30th 2012, 19:51 A Liz Claiborne hang tag is shown on a woman's blouse in Burbank, California May 13, 2008. Credit: Reuters/Fred Prouser Fri Mar 30, 2012 3:51pm EDT (Reuters) - Liz Claiborne Inc (LIZ.N) shares rose as much as 21 percent on Friday afternoon after the Wall Street Journal reported that the clothesmaker and retailer had held buyout talks with private equity firms. The Journal, citing several sources, said Claiborne in recent months held discussions with several private equity firms about taking the company private for $20 per share. A $20 per share bid would value the company, whose brands include Juicy Couture and kate spade, at $2 billion. Its shares were up 15.3 percent to $13.64 in heavy afternoon trading after soaring to $14.32, their highest level since October 2008. The newspaper said there was no formal auction taking place. A source familiar with the matter told Reuters that the company had been indeed shopping itself around last summer. It eventually sold off most of its Mexx brand. In a statement, a Liz Claiborne spokeswoman said: "Our general policy is to not respond to rumors about our company. That said, in response to media reports today, there is currently no contemplation of any strategy for the company other than executing against the operating plan we have already discussed." The Journal said buyout firms KKR & Co (KKR.N), Permira Advisors LP and Warburg Pincus LLC were among those that previously were interested in Claiborne and remain so. Permira declined to comment, while spokespersons for KKR and Warburg did not immediately respond to requests for comment. In the last few years, Liz Claiborne has sold off many brands, including its namesake, which it sold to J.C. Penney Co Inc (JCP.N) last year, to lessen it heavy debt load and focus on the units in which it sees the most potential. In November, the company broke a streak of 15 straight quarterly losses. The improvements in its finances and sales gains at its kate spade and Lucky brands have propelled Liz Claiborne shares in the last few months. They fell as low as $4.02 last August and closed at $11.83 on Thursday. Still, Juicy Couture, its biggest brand, continued to struggle during the holiday quarter, when sales fell 15.4 percent. Chief Executive William McComb said last month that sales would improve in the second half of the year. The company, which will change its name in May to Fifth & Pacific Cos, has also made changes to its executive suite, naming a former Tommy Hilfiger executive as its new finance and operations chief starting next week. (Reporting By Phil Wahba and Greg Roumeliotis in New York; Editing by Gerald E. McCormick) Link this Share this Digg this Email Reprints

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