Business

Zale Corp. bid war heats up

Centerbridge Partners has joined a bidding war for a stake in jewelry giant Zale Corp., The Post has learned.

The New York buyout firm — already enmeshed in a high-profile joust for the Extended Stay hotel chain — has sent representatives to Zale’s headquarters in Dallas to discuss a potential investment, sources said.

In addition to Centerbridge, Zale is slated to meet with reps from rivals TPG and Golden Gate Capital, sources said.

“It looks like a three-horse race now,” according to one person close to the talks, noting that others, including Sun Capital and Apollo Management, appear to have dropped out after making “low-ball” offers.

Centerbridge — headed by buyout kings Jeffrey Aronson and former Blackstone partner Mark Gallogly — didn’t respond to requests for comment.

The retail jewelry chain is looking to raise as much as $150 million to fund operations as the banking crisis has limited financing options.

Zale, whose largest shareholder is former SEC Chairman Richard Breeden, is looking to raise up to $150 million as the banking crisis has limited its options for financing.

The deal is expected to come within the next two weeks, and the winning bidder is likely to get seats on Zale’s boat, as well as warrants for new stock that will dilute current shareholders.

Yesterday, Zale shares soared 67 cents, or 23 percent, to $3.60.