ARO Stock – Aeropostale Pops on Buyout Buzz

by Christopher Freeburn | January 15, 2014 11:35 am

ARO Stock – Aeropostale Pops on Buyout Buzz

Aeropostale 300x199 ARO Stock   Aeropostale Pops on Buyout Buzz[1]Reports that Aeropostale (ARO[2]) may be exploring the possibility of a sale[3] sent ARO stock up more than 3% in Wednesday morning trading.

Sources tell Bloomberg that the apparel retailer has spoken with investment banks and two private equity firms. While Aeropostale is not currently negotiating a sale, the company is said to be exploring a range of strategies, including potentially selling itself.

In November, activist investor Crescendo Partners sent a letter to Aeropostale’s board demanding that the company seek a suitor. Crescendo indicated that it believes ARO stock to be worth between $14 and $16 a share. ARO stock is currently trading above $7 a share.

ARO has reported four straight quarterly losses, sending ARO stock down 37% over the past year. The company has been shuttering failing stores in a bid to stem the losses[4].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Aeropostale.jpg
  2. ARO: http://studio-5.financialcontent.com/investplace/quote?Symbol=ARO
  3. be exploring the possibility of a sale: http://www.bloomberg.com/news/2014-01-14/aeropostale-said-to-gauge-sale-interest-amid-activist-pressure.html
  4. shuttering failing stores in a bid to stem the losses: http://investorplace.com/2013/08/aeropostale-to-close-more-stores-than-planned/#.Uta3nHm1Kf0

Source URL: http://investorplace.com/2014/01/aro-stock-aeropostale-pops-buyout-buzz/
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