Wednesday, October 04, 2006

Pier 1 Imports (PIR) Lower After Update on Sales Process

Shares of Pier 1 Imports, Inc. (NYSE: PIR) are lower in early action Wednesday after the company issued a press release clarifying recent press reports about a sale of the company, including quotes from the CEO saying he sees a 50-50 chance of a deal and that a deal could be in weeks, not months.

Pier 1 said that since May it has agreed to provide confidential financial data to several entities to consider a possible transaction. One of the entities included Jakup a Dul Jacobsen, a Danish investor who owns 9.8% of Pier 1 and has been the center of the sale speculation after recently disclosing a confidentiality agreement with the company. (Disclosed in recent 13D)

Pier 1 said to date it has received one preliminary indication of interest, but the entity submitting that indication of interest subsequently advised Pier 1 it would not continue further discussions with Pier 1 regarding a possible transaction. Pier 1 said it can't make a prediction if a deal will be reached with the remaining entities.

Shares of Pier 1 are 3.4% lower to $7.34 in early action Wednesday.


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