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Proxy Firm ISS Recommends Zale Tieup With Signet Jewelers; Zale Shares Fall, Signet Rises

Proxy Firm ISS Recommends Zale Tieup With Signet Jewelers; Zale Shares Fall, Signet Rises

Shares of Zale (ZLC) fell more than 3% after the company said proxy firm Institutional Shareholder Services recommended to Zale shareholders that they vote in favor of acquisition by Signet Jewelers (SIG) at the proposed $21 share price. Shares of Signet Jewelers, Zale's larger rival and suitor, rose on the news. ISS said Signet's offer represented a premium on key valuation multiples to other industry competitors, Zale said. A shareholder meeting is set for May 29 to vote on the proposed merger. In afternoon trade, ZLC was off 3.26% at $21.95, and SIG was up 4.51% to $104.12.

Proxy Firm ISS Recommends Zale Tieup With Signet Jewelers; Zale Shares Fall, Signet Rises