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Hot Stock; Talbots Inc. (TLB)

Shares of specialty retailer Talbots Inc. (NYSE: TLB) have surged in early trading today after private equity firm Sycamore Partners agreed to acquire the company for approximately $193.3 million in an all cash transaction.

Last week, TLB shares had plunged after the company reported that takeover talks with Sycamore ended without a deal. However, Sycamore has finally agreed to acquire the company at a 10% discount to the offer price.

Sycamore had initially offered TLB $3 per share in December. The offer was later raised to $3.05 per share, but the talks fell apart last week after Sycamore said that it was not prepared to execute a transaction at that time. Finally, the private equity firm reached an agreement with Talbots and will now buy the retailer for $2.75 per share.

Talbot President and CEO of Trudy Sullivan said that the company is pleased with the value the transaction delivers to its stockholders and believes that this is a positive development for all of TLB’s stakeholders.

TLB shares are currently trading 93.02% higher at $2.49 on above average volume of 29.85 million.


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All stories in are for informational purposes only. This is NOT a stock recommendation. This story is a daily light analysis featuring a stock with insider buying. With some caveats, insiders purchase a stock because they think the stock is going up. There are other factors to consider such as size of the transaction relative to their compensation and net worth. Sometimes, insiders might be propping a stock price up for future financing. Sometimes, the amount of insider buying are misread or misreported. Each month, DailyStocks releases a a summary of the stocks with insider buying. Sign up for the free monthly newsletter at . About is the place where you can find stories about stocks with insider buying, where you can educate yourself about stock market investing, and where you can perform the stock search engine analysis – you enter a stock symbol, and you get a resulting page of stock ticker indexed links so that you do not have to type the stock symbol each time.