Market Overview

Clinton Group Considers Offer for Wet Seal


Activist hedge fund Clinton Group announced that it is exploring options for a possible takeover of Wet Seal (NASDAQ: WTSL)

“The Reporting Persons [i.e Clinton Group] are exploring financing alternatives to enable the Reporting Persons or one of their affiliates to make an offer to purchase the equity of the Issuer in a “going private” transaction,” according to an amended 13D Filing from Clinton Group that was released on December 18.

Wet Seal is a specialty retailer that sells apparel and accessory items for female customers.

The retailer faced a challenging 2013 which included radical leadership changes after the activist fund agreed to drop its proxy battle with the company in exchange for naming four board seats.

Back in August, the activist fund urged the company to renew its stock plan, saying a return of capital could add to the company's future earnings.

At that time, the activist fund held an approximate 6.5 percent stake in the company.

According to a regulatory filling, the activist fund had increased its ownership stake in the retailer to 7.78 percent as of December 17.

Shares of Wet Seal traded higher by more than 6 percent following the news release but have since retracted and given up most of those gains.

Posted-In: Clinton Group retailers Wet Seal TakeoverM&A News


Related Articles (WTSL)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at