Aeropostale Seen Winning LBO Bid to End Losing Streak: Real M&A

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Aeropostale Inc., the worst performing teen-clothing stock in the last three years, still has enough value to reward shareholders with a takeover premium of as much as 57 percent.

After Sycamore Partners disclosed an 8 percent stake in the retailer last month, investors began to wager that the private-equity firm will eventually make a buyout offer for the rest of the $750 million company. The stock is still down 58 percent since 2010, the biggest decline among its North American competitors, amid fashion misfires that reduced profits.