Activist hedge fund Sherwood Investments Overseas Ltd. is serious about its $7 a share, or $217 million offer to acquire retailer Trans World Entertainment Corp., the parent of FYE, Suncoast Video and other music chains. The firm, which is led by Julian Benscher, filed a Schedule 13D with the SEC officially divulging its 5.48% stake in the Albany, N.Y.-based company. Following the filing, Sherwood signed a confidentiality agreement with Trans World.
Prior to the filing, questions about whether Sherwood should be taken serious floated around the Internet. But despite the filing, the firm has yet to offer details about funding, should it win Trans World's approval. Additionally, The Albany Business Review's profile of Sherwood's Benscher, an orchid farmer, adds fuel to some of the speculation surrounding the firm's abilities to raise funding not to mention manage a chain of 960 retail stores.
Trans World was put in play when its CEO Robert Higgins offered to acquire the company for $5 a share. When Sherwood made an offer, BloggingStocks suggested it may have simply been trying to force Higgins to raise his bid. — Matthew Wurtzel
See Schedule 13D filing
See story from the Albany Business Review
See story from BloggingStocks
See TheDeal.com: Sherwood launches Trans World bid
See Dealscape: Sam Goody parent gets buyout offer
Comments
Looks like the Sherwood offer wasn't so serious after all:
http://www.bloggingstocks.com/2008/05/07/trans-world-entertainment-ceo-withdraws-takeover-offer/