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Pro Analysis

Breakingviews: All that glitters in corporate finance isn’t gold

Zales Jewelers store
Justin Sullivan | Getty Images
Zales Jewelers store

Signet Jewelers' shareholders were so dazzled by its 2014 $1.4 billion bid for rival Zales they bid the acquirer's shares way above the value of any future earnings from the deal.

Two years later, nearly all the benefits of that transaction have tarnished like cheap silver. It's a salutary reminder that not all that glitters in corporate finance is gold.