Moving On
Abercrombie Buyout Idea Was Band-Aid, Not Solution
A deal for the retailer would have saddled any combined entity with debt and integration headaches.
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Abercrombie & Fitch Co.'s jilted suitors have dodged a bullet.
The retailer, whose labeled T-shirts and short shorts were once staples of teen wardrobes, slumped 20 percent Monday after announcing it had terminated efforts to sell itself. Suitors included Express Inc. and American Eagle Outfitters Inc. (paired up with private equity firm Cerberus Capital Management) but price reportedly proved to be a sticking point. It's not surprising that Abercrombie holders are ruing the loss of a takeover premium, but shares of Express and American Eagle also dropped. Those investors should be less forlorn.