WASHINGTON (Alliance News) - TIG Advisors a stockholder of Fine jewelry retailer Zale Corp. (ZLC), owning approximately 9.5% of its outstanding shares of common stock, announced that Glass, Lewis & Co., LLC has recommended that Zale stockholders vote against the proposed merger with Signet Jewelers Limited (SIG, SIG.L) for USD21 per share in cash.
Glass Lewis concluded in its report that: "In our view, shareholders would be better served rejecting the transaction in favor of a more robust strategic review and -- in the absence of a compelling alternative -- the continued pursuit of Zale's stand-alone operating plan."
In its report, Glass Lewis strongly agreed with TIG Advisors' contention that the Signet offer to Zale shareholders undervalues Zale.
Glass Lewis also shared TIG Advisors' view that BofA's role as financial advisor to Zale was a significant flaw in the merger process.
Glass Lewis has provided its independent recommendation to Zale stockholders to vote AGAINST the merger and now it is time for Zale stockholders to act. "We are pleased that Glass Lewis, an independent third-party, endorsed TIG Advisors' position that the USD21 per share offer to Zale shareholders is inadequate, and that the M&A process was flawed and fraught with conflicts," said Drew Figdor, Portfolio Manager.
"Contrary to ISS' half-hearted and ill-conceived support for the merger, Glass Lewis has delivered an unequivocal recommendation to reject the deal with Signet. As we have said from the outset, the proposed merger with Signet represents an inequitable distribution of value. We call on our fellow stockholders to join us in voting AGAINST the merger," said Figdor.
Signet Jewelers agreed in mid-February to acquire smaller rival Zale for USD21.00 per share in cash in a deal valued at about USD1.4 billion.
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