Shares of Aaron’s (AAN) fell sharply on Tuesday after the rent-to-own retailer dismissed a potential suitor and trimmed its quarterly guidance. AAN stock tumbled more than 6% on the news.
AAN shares declined after Aaron’s said it had declined a $2.3 billion acquisition bid, calling the offer “inadequate and illusory.” Vintage Capital Management launched the bid — its fourth try at purchasing AAN — back in February, Reuters notes.
Aaron’s also issued new first-quarter guidance, reducing its outlook for quarterly revenue from previous estimates of almost $600 million, down to $587.5 million. AAN blamed the lowered outlook on harsh winter weather during the quarter. Aaron’s said that the bad weather would trim first-quarter earnings by as much as 6 cents per share.
While it turned down Vintage’s takeover bid, AAN announced that it had bought Progressive Finance, an online lease-to-own financing provider, for roughly $700 million.
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