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Chico's to review Sycamore's revised lower buyout bid, and respond in 'due course'

Tomi Kilgore

Chico's FAS Inc. responded to the lowered buyout bid made by private equity firm Sycamore Partners, saying it will "carefully review" the revised unsolicited bid of $3.00 a share, and respond "in due course." The women's apparel retailer noted, however, that it had already reviewed and unanimously rejected the previous bid of $3.50 a share, as the board of directors determined Sycamore's proposal "substantially undervalued Chico's FAS and was not in the best interest of Chico's FAS shareholders." Chico's said in a release Wednesday afternoon that numerous shareholders supported the board's decision to reject the previous proposal. Chico's stock, which was still inactive in Thursday's premarket, had gained 3.2% on Wednesday to bounce the lowest close on Tuesday since December 2008. The stock has dropped 62.6% over the past 12 months, while the S&P 500 has gained 5.8%.