Ted Baker preferred bidder pulls out, exit not linked to due diligence review
There was a new twist in the formal sale process for Ted Baker on Tuesday as the company announced in a stock exchange filing that the preferred potential bidder it had identified has decided not to proceed with an offer for the business.
It also added that it was informed of this decision last night but that this wasn't linked to the suitor’s due diligence review of the company.
Ted Baker didn't say who that preferred bidder was and it hasn’t identified it at any point in the process, although rumours in recent weeks suggested that Authentic Brands Group was the party concerned. However, those same rumours also indicated that the US-focused group might not go ahead with a formal offer and might decide to spend its money on other bid opportunities rather than on the retailer and wholesaler whose biggest market is the UK.
So where does this leave Ted Baker? Well, the company had said in May that it had received a number of other non-binding proposals and the board will now determine whether to proceed with any of those.
Again, it stressed that there’s no certainty an offer will be made and it has said throughout the process that it's not prepared to sell itself at a knockdown price, continuing to express confidence in its prospects as an independent stock exchange-listed company.
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