NEW YORK — Leslie Fay Co. is getting ready to go private under considerably sweeter terms.
The firm Tuesday agreed to sell the remainder of its stock not currently owned by its principal owner, Three Cities Funds, or its own management, to Three Cities for $5 a share. That’s $1.50 a share higher than the $3.50 offered for the stock in January and would value the transaction at about $10 million.
Three Cities and its affiliates currently own about half of Leslie Fay’s stock and this transaction, subject to shareholder approval, would add another 32 percent of the company to its holdings. The remainder of shares is said to be owned by management, including John Pomerantz, chairman.
News of the agreement sent Leslie Fay’s shares soaring 51 percent, or $1.59, to close at $4.72 in Nasdaq trading.