Whitehall $1.20 Per Share Bid Filed

Ailing jewelry retailer Whitehall Jewellers Inc. received a buyout bid yesterday (Tuesday) from Newcastle Partners L.P. of $1.20 per share. Whitehall's shares traded at $1.05 at the close of the trading day, $0.15 below Newcastle bid. Newcastle already holds a 14.46 percent stake in the company.

Whitehall announced that Newcastle filed a form 14-A, which indicates that they intend to launch a cash tender offer to purchase all of the outstanding Whitehall shares.

This is Newcastle's second buyout offer. The first offer, made in October this year, offered $1.10 per share.

Meanwhile, Newcastle's president, Steven Pully announced his resignation from Whitehall's board.

Whitehall's board said the proposed tender offer would be subject to a number of conditions including either the refinancing of the $140 million senior credit facility or the consent to the tender offer and notes by the senior lenders.