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Ratners in Talks to Revise Offer for Kay Bonds, Deadline Extended

August 8, 1990

LONDON (AP) _ Britain’s largest jewelry chain, Ratners Group PLC, said Wednesday that it was holding talks to revise the terms of its offer to bondholders as part of its $328 million takeover bid for the U.S.-based Kay Jewelers Inc.

Ratners said it had extended the deadline for its bond offer by 24 hours until midnight EDT Wednesday. It declined to say how much of the debt has been tendered so far.

The statement from the company said that it currently was negotiating revising terms of its offer with representatives of the holders of each class of the notes but it declined to elaborate.

It added that ″there is, however, no assurance that any agreement between Ratners and such holders will be reached.″

The Financial Times reported that bondholders were unhappy with the terms, and that they wanted more money.

However, Ratners could press ahead without bondholder approval, because shareholders have given the deal a green light, the Financial Times said.

Ratners is offering $17 worth of stock for each of Kay’s 12.4 million shares, and is assuming Kay’s debt. Kay is based in Alexandria, Va.

The addition of Kay’s 494 stores would increase Ratners’ U.S. outlets to nearly 1,000, making it the United States’ second largest jeweler after Zales.

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