It’s not surprising that Zale’s stock rose following its buyout offer from Signet. What is surprising, stock watchers say, is that it is now trading over $21, the amount that Signet said it would pay for the company’s shares.
At press time, the shares were trading at $21.60, a 60-cent premium over Signet’s offer. It has traded over $21 consistently since Signet announced the bid on Feb. 19.
The premium has led some to speculate that the company may receive another offer—or that Signet may increase its bid. The Dallas Morning News suggested it might be possible short covering.
A Zale spokeswoman did not return a request for comment from JCK.
On a Zale conference call on Feb. 27, executives said they could not offer any comment on the Signet purchase, but expected it to close by the end of the year.