Sherwood Investment Overseas Ltd. has proposed paying $7 per share, or $217
million, to buyout Trans World Entertainment, the Zurich-based financial firm says.

The company, which says it holds 1.5 million Trans World shares, says it is in the process of seeking certain non-public information from representatives of Trans World. In a letter signed by Julian M. Benscher, who is described as an authorized signatory for Sherwood, the firm says, "We are willing to enter into a confidentiality agreement in order for that information to be forthcoming, we have not yet agreed to the terms of any such arrangement."

This follows a Nov. 16 Sherwood letter that said Trans World chairman and CEO buyout offer of $5 per share was "grossly inadaquate, undervaluing the chain by $3 a share." If the chain was shopped, Sherwood said in the first letter, it could fetch as much as $8 a share. Although its offer is only for $7 a share, that price may be increased as a result of the information obtained from the due diligence process, its latest letter says.

After the first Sherwood letter, Trans World announced that the chain has been up for sale since Many when a committee of the company's non-management board members hired Goldman Sachs.

After the offer was announced today at 3 pm, the company's shares closed at $5.76, up 79 cents from the previous day close of $4.97.

Trans World declined comment, while Sherwood didn't immediately return a call for comment.