J Crew Group has settled a lawsuit over its proposed $3 billion takeover by private- equity firms, TPG Capital and Leonard Green & Partners, The Wall Street Journal reports. The clothing retailer, which had until Jan. 15, 2011, to solicit other offers, will extend the period to solicit competing offers until Feb. 15, 2011. The company will cut the fee that it must pay a suitor for canceling a deal to $20 million in certain circumstances as per the agreement, which also includes a $10 million payment to plaintiffs. The original $27 million fee, which is equal to about 1% of the purchase price, was already lower than the typical breakup fee, adds Bloomberg.
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