Monday, July 23, 2012

Talbots Almost Done

It looks we’re close to the finishing line with the Talbots, Inc. (Ticker: TLB) acquisition by the private equity firm, Sycamore Partners. On Friday, Talbots received the ok from the PBGC and the financing proceeds condition was removed. These are two very positive developments for the deal to close without any significant delay. I added a bit more Talbots today at $2.71 and tendered the shares. Assuming a 08/17 close, I’m looking at a net return of 1.47% (~ 20% annualized).

I also took a stab at Nexen, Inc. (Ticker: NXY), which is being acquired by Cnooc Ltd. (the giant China oil company). I picked up a few shares at $25.81 and subsequently sold at $25.94 for a quick 0.50% gain. The company is expecting a Q4 closing, but I think that is a bit optimistic considering the sensitivity by Canada on such a large acquisition by a Chinese company.


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