Activist investor Breeden Capital Management LLC has increased its stake in Zale Corp. to 13.3 percent, according to a filing with the Securities and Exchange Commission Wednesday.Speculation is running as to the reasons behind Breeden's increase in ownership. According to today's New York Post,
The Greenwich, Conn.-based investment fund reported owning 5.9 million shares, or a 13.3 percent stake in the jewelry store operator. In September, Breeden reported owning about 3.8 million Zale shares, or a 7.7 percent stake.
... (the increase) sparked speculation that Breeden is pushing Zale - the largest US jewelry chain by number of stores - to sell off assets and prepare itself for a sale to Signet Group. The British-based rival, which owns the Kay Jewelers and Jared chains, had pushed for merger talks with Zale in the spring of 2006, only to be rebuffed by Zale's board.Stay tuned:
SeekingAlpha (Update 1/8/08)
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