London

BRITISH fashion retailer Ted Baker said on Monday (Apr 4) it had launched a formal sale process, after private equity firm Sycamore improved its takeover proposal and another third party also showed interest in bidding for the company.

Ted Baker shares jumped as much as 11 per cent to 142.6 pence.

The news comes a week after Ted Baker rejected a second unsolicited takeover proposal from New York-based Sycamore that valued the retailer at £253.8 million (S$451.68 million), saying it significantly undervalued the group.

Ted Baker said Sycamore has made a third proposal, the terms of which were not disclosed in its announcement on Monday.

"The Board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the Board considers attractive relative to the standalone prospects of Ted Baker as a listed company," the company said in a statement.

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The formal sale process, which the UK's takeover regulator has agreed to, allows talks with interested bidders to take place on a confidential basis. Any potential suitors participating in the process will not be obliged to identify themselves publicly.

The company said it seeks to invite proposals from interested parties during the first phase of the sale process, following which it expects a select number of bidders to participate in a second phase.

Ted Baker said it has not yet had any discussions with Sycamore as to whether the firm wishes to participate in the process. REUTERS