William Blair analyst Dylan Carden believes the recent delay in the Kate Spade (KATE) bidding process is likely the result of a lower than expected offer from Coach (COH). Fears of deceleration in Kate Spade's performance into Q1 likely resulted in a lower bid, Carden wrote yesterday afternoon in a research note. The analyst also believes there is "some smaller possibility" that Coach is not interested in the entire Kate Spade business, which could also be resulting in a lower overall bid. Kate Spade management remains motivated to make a deal, though it could be balking at a low-$20 per share offer, Carden contends. He continues to expect a deal gets done at least in the low-$20 per share range. Downside for the shares without a deal announcement in the coming weeks could be in the $17-$18 range initially, Carden adds.