Signet Remains Committed to Zale Purchase

(IDEX Online News) – Signet Jewelers has reiterated its commitment to the agreed $21.00 per share purchase price for Zale Corporation's outstanding common stock. Some Zale shareholders have been opposed to the deal, saying that the $21 price was unfair.

 “We continue to urge all Zale stockholders to vote in favor of the transaction at the Zale special meeting of stockholders on May 29, 2014," said CEO Mike Barnes.

He said that the merger reflects the full and fair value for Zale common stock based on Signet’s due diligence on the company and its understanding of the risks and challenges associated with, and additional substantial investment required for, Zale to continue to deliver improved results relative to its history both in the near and long term. 

The $21.00 per share price represents a 41-percent premium for Zale over its closing price on February 18, 2014, the last day of trading prior to the announcement of the transaction, and an 85-percent premium over the volume weighted average closing price of Zale's common stock for the 12-month period ended February 18, 2014. 

In addition, Signet notes that there are significant risks and challenges associated with Zale remaining an independent company and that no other party has expressed interest or come forward to propose an alternative acquisition of Zale.

The company said that should the proposal not go through, it was committed to identifying additional ways to deliver maximum value its shareholders, including through strategies such as: increased Signet stock repurchases, leveraging its balance sheet and optimizing its corporate structure and implementing a disciplined approach to value-enhancing acquisitions.