An institutional investor has signalled its willingness to take a major stake in troubled US leather accessories retailer, Wilsons The Leather Experts Inc.

The as-yet unidentified company has offered to buy 16.3 million shares for $35 million, paying $2.15 a share, plus warrants to buy another three million shares at $3 each, exercisable for five years. The proposal would take the place of the company's agreement in April with Peninsula Investment Partners and two affiliates of Quaker Capital Management Corp. to buy 17.9 million shares for $35 million, with warrants to buy 4 million shares for $3 a share.

The new investor ended negotiations to buy convertible preferred stock of the company on April 23, Wilsons added.  Wilsons, which sells leather accessories at 458 U.S. stores, said it would consider the offer.  Wilsons stock rose 17 cents, or 7.3%, to $2.51 on news of the offer.

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