PE Funds are interested in a jewelry company
The stock added as much as 11 percent, the most since May 2016, after Italian daily Il Sole 24 Ore said KKR and Bain Capital are among private-equity funds that could be studying a dossier on Pandora.
Sole, which did not cite anyone for its reporting, said the jewelry maker is a “perfect target” for buyout funds.
Before Tuesday, Pandora shares were down more than 60 percent from a May 2016 peak as the bracelet maker has battled weak retail sales in the U.S., competition from cheap imports in China and a phalanx of hedge funds betting against it.
The market value of Pandora is now roughly $7 billion compared with a 2016 peak of $18 billion. The stock is currently trading at a price-to-earnings ratio of 8.2. That’s the lowest among a peer group of nine international jewelry companies, which have an average PE ratio of 15 (including Pandora’s), according to data compiled by Bloomberg.
Johan Melchior, a Pandora spokesman, said he didn’t immediately have any comment, when contacted by phone.