After earlier reports of Sycamore, a New York-based private equity company, offering 250 million pounds for a takeover of Ted Baker, the fashion chain swiftly refused.
Ted Baker declined the proposal which would see Sycamore pay 130 pence per share for the London-listed fashion brand.
Sycamore increased the offer to 137.50 pence, which the brand’s board also declined, citing the offer undervalues the businesses and inadequately compensates shareholders.
A statement from the firm said: “Ted Baker is a leading global brand with a strong future. 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 retailer said it will deliver value for shareholders “well in excess of the price offered by Sycamore.»
The deadline for Sycamore to raids its bid is April, after which the deal will be off the table.
Ted Baker’s current market value of 233 million pounds is less than 20 percent of that from its heyday, when it was valued at 1.4 billion pounds.