Whitehall and Newcastle, Finally Reconciled?
January 24, 06 by Danielle Max
The ongoing and very public dispute between Whitehall Jewellers and Newcastle has made for interesting reading in the usually staid financial arena. The latest installment occurred on Friday, when Whitehall announced that, despite their best efforts, an agreement with Newcastle looked unlikely. But that might be changing.
Late on January 20, however, the situation changed when Whitehall received draft documents from Newcastle relating to their proposed tender offer for all the shares of stock of Whitehall and other related transactions.
Whitehall is currently reviewing and evaluating the documents, and has entered into discussions with Newcastle to ascertain whether the transaction can be completed.
Newcastle said that the documentation it gave Whitehall Friday included a commitment to place $147.5 million in cash in a bank account to provide assurance that funds required for the tender offer and the term loans are readily available, reports Reuters. Whitehall had said that the protracted negotiations with Newcastle were partly to blame for their financial situation.
Newcastle launched their unsolicited takeover offer of Whitehall in October. The current offer to Whitehall shareholders is $1.50 a share.
Whitehall Jewellers, Inc. is a national specialty retailer of fine jewelry, operating 376 stores in 38 states. Whitehall has announced that it intends to close a number of stores in the near term. The company operates stores in regional and super regional shopping malls under different brand names such as Lundstrom Jewelers and Marks Bros. Jewelers.
