By
Reuters
Published
Apr 21, 2010
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Zale plans to sell minority stake to Golden Gate

By
Reuters
Published
Apr 21, 2010

NEW YORK, April 20 (Reuters) - U.S. jeweler Zale Corp (ZLC.N) plans to sell a minority stake to Golden Gate Capital Corp, Bloomberg News reported on its website citing two people familiar with the decision.

Zale
Photo: www.zales.com

Golden Gate's offer was chosen over proposals from Centerbridge Capital Partners LLC and TPG, the people -- who declined to be identified before an announcement -- told Bloomberg News.

Zale has been struggling with sharp sales declines.

While the companies will enter into exclusive talks, a transaction could still fall apart, Bloomberg said citing the people.

Zale treasurer Stephen Massanelli declined comment. Golden Gate could not be immediately reached for comment.

Zale was seeking about $100 million to $150 million for the stake, the news service had reported earlier this month. (Reporting by Dhanya Skariachan; editing by Carol Bishopric)

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