Corvex Capital Exercises Options and Reiterates Stake in Signet Jewelers Limited (SIG)

Keith Meister’s Corvex Capital, in its latest filing with the Securities and Exchange Commission, revealed that it has fully exercised its call options and acquired 5.37 million shares of Signet Jewelers Limited (LON:SIG) reiterating its stake of 6.26 million shares disclosed earlier. The activist position currently amasses 7.80% of common stock.

According to the filing, the common stock shares were purchased for a total price of nearly $470 million.

Signet Jewelers Limited (LON:SIG) is the largest specialty jewelry retailer in the U.S. and UK. The company’s U.S. division operates more than 1,400 stores in all 50 states primarily under the name brands of Kay Jewelers and Jared The Galleria Of Jewelry. The company’s UK division operates approximately 500 stores primarily under the name brands of H.Samuel and Ernest Jones.

On Feb. 19, Signet Jewelers Limited (LON:SIG) announced that it has entered into an agreement with Zale Corporation (NYSE:ZLC) to acquire all of the issued and outstanding stock of Zale Corporation (NYSE:ZLC) for $21.00 per share in cash consideration. The transaction would be valued at approximately $1.4 billion, and is subject to Zale stockholder approval, certain regulatory approvals and customary closing conditions.

Meister was activist investor Carl Icahn‘s right hand made prior to the founding of Corvex Capital. The hedge fund was launched in March 2011. Corvex’s largest position as at the end of last year is in Fidelity National Financial Inc (NYSE:FNF), the fund owning nearly 19 million shares, with a reported value of more than $590 million. However, the fund also disclosed recently holding 38.99 million shares of  Williams Companies, Inc. (NYSE:WMB), in which Corvex is part of a group together with Eric Mandelblatt‘s Soroban Capital. Both funds hold 8.78% of Williams’ common stock.

Last month, Corvex and Eric W. Mandelblatt‘s Soroban Capital reported raising their aggregate stake in Williams Companies, Inc. (NYSE:WMB) to 59.99 million shares from 51.21 million shares held earlier.

Disclosure: none

Recommended Reading:

Carl Wiese’s Grow Partners Top Picks in Q4

York Capital Management’s Top Q4 Holdings

A Look at Tekne Capital’s First 13F