Talks End Between Zale and Signet
June 13, 06
Following discussions between Zale Corporation and the Signet Group over a potential merger, Zale yesterday announced that the talks between the two companies have ended.
After “careful” consideration, Zale's board of directors has terminated the discussions, having concluded that its shareholders are best served by continuing as an independent company. Zale's board said it remains focused on driving shareholder value as its foremost goal.
Betsy Burton, Zale's acting CEO, commented, "We are putting the pieces in place to regain market share and improve profitability and have strengthened leadership in key operating units. Our management team is fully focused on preparing the company for the 2006 Holiday Season, having developed a sound 'back to basics' plan for accomplishing its key strategic objectives."
Burton went on to say that given the company's strong potential as a stand-alone business, executing its strategy offers the best prospect for enhancing shareholder value. Zale also indicated that it intends to announce the results of its CEO search within the next several weeks.