Deals
Chico’s Luring Activist Seen as LBO Target Under Dyer: Real M&A
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Chico’s FAS Inc. stands to hand shareholders a gain of at least 38 percent should activist investor Blue Harbour Group LP’s efforts to unlock value at the women’s clothing chain spark takeover interest.
Blue Harbour, led by former KKR & Co. general partner Clifton S. Robbins, disclosed a 5.6 percent stake in Chico’s last month and said talks with management could lead it to propose changes at the operator of chains including White House Black Market and Soma Intimates. While the shareholder didn’t specify what steps it could take, JPMorgan Chase & Co. said some investors are speculating there’s an increased chance Chico’s may become a buyout target.