Kate Spade & Co (NYSE: KATE) is having a rough start in the pre-market hours this morning, and for good reason. According to various sources, the company has been in talks to be purchased by Coach (COH). However, it seems as though those talks have stalled. As a result, upset investors are pushing the stock downward, prompting our partners at Trade Ideas to alert us to the declines. At the moment (9:07), KATE is trading at $16.35 per share after a loss of $0.41 per share or 2.45% thus far today.
KATE Talks With COH Stall
As mentioned above, Kate Spade isn’t having the best of days in the market today after multiple sources say that the talks between the company and Coach about a potential takeover have stalled. Of course, investors look forward to takeovers as they generally come with strong premiums.
Nonetheless, the potential for a takeover is not yet over. According to various reports, KATE has reached out to several private equity firms for a potential takeover. There is no information on whether or not any of these private equity firms will be taking the company up on the offer.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on KATE. In particular, we’re interested in following the company’s attempts to sell itself. While COH may be off the table, there’s still hopes of an acquisition by private equity firms. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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