Pier 1 Shares Climb on Disclosure of Agreement

September 21, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on September 2006 Pier 1 Imports disclosed in a filing with the Securities Exchange Commission that it has entered into confidentiality agreement with Iceland-based Lagerinn ehf.

News of the agreement sent the specialty retailer’s shares climbing 8 percent under heavy trading. Pier 1 said the confidentiality agreement was reached on Tuesday in connection with Lagerinn’s consideration of a “possible negotiated transaction” with the company.

Under the agreement, Pier 1 will provide Lagerinn with certain evaluation materials.

In March, the retailer agreed to sell certain assets in the United Kingdom to U.K. to Palli Ltd., a division of Lagerinn. At that time, Pier 1 said Lagerinn and Jacobsen beneficially own about 9.9 percent of its common stock.

Pier 1 hired JP Morgan in May to assist in seeking strategic alternatives.