Summary
Breeden aims on Zale and became a Stake Holder in Zale INC. They want to be in management to improve things in Zale and want to work for it.
Analysis
Breeden Capital Management is laying a claim as the biggest shareholder in Dallas-based Zale Corp., with a 15.9 percent stake, according to a filing yesterday with the Securities and Exchange Commission.
The Greenwich, Conn.-based hedge fund, which said it has met with Zale's management recently, is planning to launch a public campaign to enhance the value of its $136.4 million investment.
Breedon also want to be in the mangement of Zale inorder to improve thigs in there.
To unlock value in the Zale brand, Breeden's firm aims to improve management of the chain, which is the nation's largest by number of stores. But another attractive alternative may be to sell Zale to British-based rival Signet Group Plc, the operator of the Kay Jewelers and Jared chains. Zale's board rejected an overture from Signet in mid-2006.
This is a big recession time in US and this will lead to a real testing time for both Zale and its investors Breedon as sales are expected to go down and seaons didn't help much.
