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Advertisement

CEO Higgins investigates purchase of 100% of shares

By Susanne Ault -- Video Business, 11/20/2007

NOV. 20 | Trans World Entertainment’s board of directors is allowing the chain’s chair and CEO Robert Higgins to move forward on his bid to shift the retailer into a privately held company.

Higgins can now contact prospective co-investors to purchase all outstanding shares of Trans World stock. Riley Investment Management LLC, which currently holds 11.9% of Trans World shares, is among the potential co-investors that Higgins is targeting.

Currently, Higgins and his associates own 40% of the shares. Higgins, in an announcement made earlier this month, said he will pay $5 per share to capture the remaining portion.

Earlier this year, a special committee was formed within the board to explore strategies to enhance shareholder value. The committee also is considering an outright sale of the company, in addition to Higgins’ share purchase plan.

The special committee notes that permitting Higgins to search for co-investors should not indicate it has reached a decision on the proposal’s merit. The group is still open to fielding business proposals elsewhere about Trans World.


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