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Chico's rejects takeover offer from Sycamore

May 16 (Reuters) - Women's apparel retailer Chico's FAS Inc said on Thursday it had rejected private equity firm Sycamore Partners LP's offer to take the company private in a deal valued at $407.8 million.

The company said Sycamore's offer of $3.50 per share substantially undervalued the retailer, known for its Soma brand of women's intimate apparel.

Chico's had earlier said it had rejected a higher $4.30 per share offer from Sycamore, which owns a 6.6% stake in the company.

Chico's shares fell 1.3% to $3.75 in extended trading.

(Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli)