CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Ted Baker shares receive bid fillip

The menswear chain says it has received a number of bids for the company

Ted Baker, which recently put itself up for sale, says it has received a flurry of unconditional offers from potential suitors.

The fashion menswear retailer announced in early April, following bid interest and after consulting with major investors, it was conducting “an orderly process” to find a suitable offer.

Management says that it has since received a number of “non-binding proposals” from suitors who will now gain access to the company’s books for due diligence purposes.

Shares in the company rose 3% on Wednesday and are trading at 147.2p.


Sycamore starts the bidding

Ted Baker previously rebuffed a number of offers from private equity outfit Sycamore before putting up the for sale sign. The US-based firm made two offers of 130p and 137.5p and it has since emerged that former chief executive Ray Kelvin, who was ousted last year after allegations of inappropriate behaviour, would have backed the bids.

Kelvin remains a shareholder and advisor to the company, which is now headed by CEO Rachel Osborne. The second offer from Sycamore valued the company at £253.8m.

However, Ted Baker’s management said both bids “significantly undervalued” the company and “failed to compensate shareholders for the significant upside that can be delivered by Ted Baker as a listed company.” They argue that the retailer is “a leading global brand with a strong future.”

The company is currently trading at a market capitalisation of £271.38m.

It’s thought that Authentic Brands, the company behind Reebok, is also one of the interested parties. The company has also invested in David Beckham’s brand. However, it failed last year in its bid to buy Top Shop with JD Sports. It’s also believed that Sycamore is still in the running.

Sarah Riding, a retail and supply chain partner at lawyers Gowling WLG, recently told the FT that the approach from Sycamore suggested possible buyers might see the opportunity to expand the Ted Baker brand abroad. The chain currently operates 400 stores, including those in Europe and North America.

Ted Baker shares have lost 32% of their value in the past year and 94% over the last five years.

A tough retail environment

Following a series of corporate blunders, Ted Baker was hit hard by the pandemic but is currently undergoing a turnaround programme, spearheaded by Osborne.

The retail environment is especially difficult at the moment due to rampant inflation pushing up input costs and reducing consumer’s disposable cash. Associated British Foods, which operates Primark – albeit a discount retailer – warned this week that it would have to increase prices due to inflationary pressures.

There’s never any guarantee that a definitive offer will emerge for Ted Baker, but for now the shares are best held onto.

Ted Baker reports full-year results and its first-quarter trading update on 26th May, so investors may hear more then, if not before.

Go short and long with CFDs on 16,000+ shares with Singapore’s No.1 platform.* Learn more about trading shares with us, or open an account to get started today.

*Awarded the Best Online Trading Platform by Influential Brands in 2021.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.