(Bloomberg) -- Kate Spade & Co., which put itself up for sale earlier this year, tumbled as much as 8 percent in late trading on concern that takeover talks are dragging on and may result in a lower price.
The handbag maker will require a few more weeks to negotiate the sale, Reuters said on Monday, citing unidentified people familiar with the situation. Kate Spade received an offer last week from Coach Inc., and Michael Kors Holdings Ltd. also is interested in a possible deal, the news service reported.
If a sale is successfully negotiated, the price would likely come in below Kate Spade’s current $2.9 billion valuation, Reuters said. And it’s possible that the talks won’t result in a deal at all, according to the report.
Representatives for Kate Spade and Coach declined to comment, citing policies against discussing rumors and speculation. Michael Kors Holdings didn’t immediately respond to a request for comment.
The shares fell as low as $20.97 in extended trading after the report was published. They had been up 22 percent this year through Monday’s close, fueled by the takeover speculation.
The company announced that it was exploring its strategic alternatives in February, with Perella Weinberg Partners acting as financial adviser. Kate Spade investor Caerus Investors had pushed the fashion house to put itself up for sale. The investment firm said that while the company is generating solid growth, it needs better management to help boost its profit margins.
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