Investor can boost Chico's stake

Blue Harbour Group could be ready to make a big fashion statement.

First reported by Law360, an online news source owned by law information powerhouse LexisNexis, the investment group got the green light from the Federal Trade Commission May 13 to boost its stake in Chico's FAS, the women's retailer based in Fort Myers. FTC approval indicates there are no regulatory issues with any increased stake.

A Chico's proxy statement filed May 9 shows Greenwich, Conn.-based Blue Harbour Group already owns 6% of the retailer's shares, a stake recently worth $147 million. That makes Blue Harbour Chico's second-largest shareholder after New York-based BlackRock.

Blue Harbour Group, led by Kohlberg, Kravis & Roberts alumnus Clifton Robbins, seeks out undervalued companies that could create shareholder value by implementing strategic or financial change. Already, Chico's raised its quarterly dividend by 36% and announced a $300 million share buyback in December.

If Blue Harbour boosts its stake further, you can be sure more changes are in store for the retailer. Chico's operates nearly 1,500 stores under the Chico's, White House | Black Market, Soma Intimates and Boston Proper brands.