Zale Corp is considering a financing proposal from Sun Capital Partners after rejecting a proposal from Apollo Management, according to the Wall Street Journal Online.
According to the report, Sun Capital proposed investing between $50 million and $100 million for preferred stock that could ultimately give the company a majority stake in Zale. The report also states that Sun agreed to provide a bridge loan, including $600 million in a revolving credit facility.
Sources close to the deal quoted by WSJ.com say the deal could close in two to three weeks if approved.
The Apollo deal reportedly would have inserted a new management team, headed by former CEO Robert DiNicola.
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