Dive Brief:

• New York City-based hedge fund TIG Advisors LLC owns 9.5% of Zale Corp., and is asking fellow shareholders to vote against the $21-per-share buyout approved by Zale’s board, saying the offer is “grossly unfair.” The vote is scheduled for May 29.

• TIG Advisors portfolio manager Drew Figdor says the deal is lopsided in favor of Signet Jewelers shareholders. In its proxy filing with the Securities and Exchange Commission, TIG also said that Zale failed to find other bidders or a better deal while it negotiated its deal with Signet, which also runs Kay and Jared jewelry stores.

• The merger would create a retail jewelry company with $6.2 billion in yearly sales and 3,600 stores.

Dive Insight:

With this proxy fight, hedge fund TIG Advisors is throwing a wrench into Signet’s plans to become the world’s largest specialty jewelry retailer. If TIG fails to stop the merger May 29, it will ask shareholders to refrain from voting, which would delay things.