Abercrombie Surges on Report That Cerberus May Make Joint BidBy
Abercrombie & Fitch Co. jumped as much as 11 percent after the Wall Street Journal reported that private equity firm Cerberus Capital Management is working on a joint bid for the struggling apparel chain.
Cerberus would make the offer with American Eagle Outfitters Inc., potentially giving the team an edge over other suitors, the Journal said. Other private equity firms and retailers, including Express Inc., also have shown interest, according to the newspaper.
Abercrombie shares rallied earlier this month after news of the talks first surfaced. The takeover speculation follows years of Abercrombie struggling to regain its edge. Mike Jeffries, Abercrombie’s once-visionary leader, stepped down in 2014 and the company has struggled to reignite sales.
The stock rose as high as $13.59 on Wednesday, marking the biggest intraday gain since the merger discussions were initially reported on May 10.