U.S. News

Harris Associates Looks to Sell Giordano Stake


U.S. investment firm Harris Associates is looking to sell its 14% stake in apparel firm Giordano International as it is not happy with the company's earnings and dividends, the South China Morning Post reported on Monday.

Harris Associates, the second-largest single shareholder of Giordano, is interested in selling its stake if it receives an offer at least 50% above the current share price, the paper said without citing any sources.

Hong Kong-based fashion retailer, Esprit Holdings, Inditex's Zara and Tokyo-listed Uniqlo  operator Fast Retailing have been considering taking a substantial stake in Giordano, one of Asia's largest clothing chains, the newspaper said.

Giordano has been vulnerable to a takeover after its founder Jimmy Lai sold his 27% stake in 1996, leaving the company without a key shareholder, analysts said.

Aberdeen Asset Management is the company's largest shareholder, holding 14.73%, according to the Hong Kong stock exchange. The stock has lost about 9.6% in the past three months.