The Talbots, Inc

I initiated a position in The Talbots, Inc. (Ticker: TLB) today. This is a specialty women’s retailer, which has agreed to be taken private by Sycamore for $2.75 in cash. Sycamore originally offered $3.05, which was rejected by Talbots. Sycamore walked away causing the stock to drop to $1.30 and change from $2.50. Today, Talbots announced a definitive merger agreement with Sycamore for $2.75. I picked up some shares today with an average cost of $2.54, which will generate a net return of 8.26% or (~30% annualized return assuming a closing by August 31).