Express Shares Rise As Sycamore Partners Interested In Buying Company

(RTTNews) - Specialty apparel and accessories retailer Express, Inc. ( EXPR) Thursday confirmed that it has received a letter from Sycamore Partners, which owns around 9.9 percent of Express' outstanding shares, indicating that Sycamore is interested in acquiring the company. The stock climbed 22 percent in the extended trade.

Express has established a Special Committee of the Board to determine a course of action it believes is in the best interest of all stockholders.

In addition, Perella Weinberg Partners LP and Sullivan & Cromwell LLP have been engaged to serve as advisors to the company and the Special Committee.

Express also adopted a Stockholder Rights Plan, intended to ensure all stockholders realize the long-term value of their investment in the company and protect them from unfair or coercive takeover attempts.

The rights plan is intended to provide the Board with sufficient time to consider any alternatives to the offer.

Under the plan, one right will be distributed for each share of Express common stock outstanding at the close of business on June 23.

If any person or group acquires 10 percent or more of the voting power of the company's outstanding common stock without the approval of the Board of Directors, there would be a triggering event causing significant dilution in the voting power of such person or group.

Existing 10 percent or greater stockholders are grandfathered to the extent of their June 12 ownership levels.

The plan will continue in effect until June 12, 2015, unless ratified by a majority vote of the company's stockholders or unless earlier redeemed or terminated by Express.

EXPR, which closed down 2.6 percent at $13.55 on Thursday, climbed 22.14 percent in the extended trade.