Why Liz Claiborne Soared

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Liz Claiborne (NYS: LIZ) have soared by as much as 30% today on reports that the company has considered going private.

So what: The company has allegedly had talks with various private equity firms with an asking price as high as $20 per share, which is almost double yesterday's closing price of $11.83 and still a healthy premium to even today's high. KKR (NYS: KKR) is rumored to be among the firms still potentially interested.


Now what: Sources say that Liz Claiborne isn't currently interested in a sale or any type of deal, despite discussions over the past several months. The company is looking to continue with its restructuring efforts instead. A spokeswoman said, "We don't comment on highly speculative rumors -- especially involving the world of private equity. However, the performance of our stock and even our bonds suggest we have a committed investor base who believes in our strategy and our brands."

Interested in more info on Liz Claiborne? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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