Sherwood Ups Trans World Stake, Signs Confidentiality Pact17 Dec, 2007 By: Erik Gruenwedel
Sherwood Investments Overseas Ltd. has signed a confidentiality agreement with Trans World Entertainment Corp. regarding its $7 per share acquisition bid.
The Orlando, Fla.-based holder of Trans World common stock disclosed in a Dec. 13 regulatory filing that it had combined its 1.7 million shares with additional partners to now collectively represent more than 1.9 million shares, or 6.31% of Trans World outstanding stock.
Sherwood is seeking to outbid a $5 per share non-binding cash offer from Trans World founder/CEO Robert Higgins and investor Bryant Riley.
Sherwood's $217 million offer was submitted in a Nov. 29 letter to the special committee established by the Trans World board to study acquisition tenders.
Higgins and Riley, who collectively own 55% of Trans World stock, wish to take the New York-based parent of F.Y.E., Suncoast, Wherehouse and Second Spin brands private in a move analysts say would create a more efficient and competitive business model in a challenging entertainment retail climate.