Breeden Capital Boosts Stake in Zale Corp (ZLC) to 17.66%

In an amended 13D filing this morning on Zale Corporation (NYSE: ZLC), Richard Breeden's Breeden Capital disclosed a 17.66% stake (7,875,839 shares) in the company. This is up from the 15.85% stake (7,070,839 shares) the firm disclosed in a recent filing.

In the firm's original 13D filing on the Zale's investment, Breeden said they have had conversations with the Company’s management, although the nature of those talks were not disclosed.

Breeden's has aggressively built up its stake in Zales. In the original filing in September, the firm showed a 3,784,639 shares position. That position now stands at 7,875,839 shares.

Citadel LP Bumps Its Stake in Breeden Activist Target Zale (ZLC)

Things heating up at Zale Corporation (NYSE: ZLC)?

From the 13G section of our main site:

"In a 13G filing this morning on Zale Corporation (NYSE: ZLC), Ken Griffin's Citadel LP disclosed a 5.31% stake (2,605,739 shares) in the company. The firm held 830,091 shares of ZLC at the quarter ended June 30, 2007. A 13G indicates a 'passive investment'.

Interestingly, two other notable hedge funds, SAC Capital and Breeden Capital, recently disclosed new 5%+ stakes in the jewelry retailer. Mega-hedge fund SAC, which is run by Steve Cohen, disclosed a 5.1% 'passive' stake in ZLC on 09/17. Breeden Capital, run by former SEC chief Richard Breeden, disclosed a 7.72% 'active' stake on 09/17. Breeden noted past talks with management and said they may conduct future talks.

According to Stockpickr.com, Citadel Investment Group is a $20 billion dollar Chicago-based hedge fund founded by billionaire trader Kenneth C. Griffin, and is one of the world's largest hedge funds. The firm is known for its daily trading volume, which amounts to 1-2% of daily trading activity in New York and Tokyo. Link to Citadel Portfolio"

Breeden Capital Targets Zale Corp (ZLC)

In a 13D filing after the close on Zale Corporation (NYSE: ZLC), Breeden Capital disclosed a 7.72% stake (3,784,639 shares) in the company. The firm noted past talks with management and said they may conduct future talks

Breeden Capital is run by former SEC cheif Richard Breeden. The firm has pushed for changes at Applebee's (Nasdaq: APPB) and H&R Block (NYSE: HRB), winning board seats at both companies.

From the filing:

"Representatives of the Reporting Persons have had conversations with the Company's management. The Reporting Persons intend to continue to pursue ongoing discussions with the Company’s management and potentially with members of the Company’s board of directors. Discussions to date have related primarily to the business, financial performance, operations, strategic plans and disclosure practices of the Company. As a result of the Reporting Persons’ ongoing review and evaluation of the business, they may also communicate with the board of directors and/or other shareholders from time to time with respect to operational, strategic, financial or governance matters, or otherwise encourage actions that the Reporting Persons believe in their discretion will enhance shareholder value."