Liz Claiborne Takeover Seen With Allure of Kate Spade: Real M&A

Even after losing more money last year than any other U.S. clothing retailer, Liz Claiborne Inc. could still be a bargain in a takeover.

The $1.3 billion owner of the Kate Spade brand will return to profitability in 2012, reversing five years of losses that topped $2 billion, according to analysts’ estimates compiled by Bloomberg. With revenue projected to rise 14 percent next year, New York-based Liz Claiborne still closed yesterday at $12.36 a share, a 28 percent discount to 2013 sales. That’s cheaper than 94 percent of similar-sized U.S. apparel companies, data compiled by Bloomberg show.