L Brands (NYSE:LB) news concerning a possible deal for Victoria’s Secret has LB stock up on Monday.
If the rumors are true, it looks like L Brands is looking to sell off Victoria’s Secret. Recent reports claim that Sycamore Partners is in negotiations to acquire the lingerie company from L Brands.
Sources close to the matter are behind this current claim. According to them, L Brands and Sycamore Partners could announce a deal for Victoria’s Secret as early as this week. However, they also note that the deal isn’t set and negotiations could end without a deal or face a delay.
The finer details of the L Brands news are still currently unknown. That includes how much Sycamore Partners may be willing to pay for Victoria’s Secret. It’s also unknown if current Victoria’s Secret CEO Les Wexner, who also serves as CEO of LB, will stay with the retailer, reports CNBC.
While we don’t know how much a deal for Victoria’s secret could reach. There’s already talk from analysts taking guesses at the price. MKM analyst Roxane Meyer is among them with a range of $2.00 billion to $3.40 billion for the lingerie retailer.
So what exactly does L Brands gain from selling Victoria’s Secret? Simply put, it wouldn’t have to worry about it anymore. The brand hasn’t been performing well for it and the extra funds could help pay down its $5.50 billion in debt. It will also still retain Bath & Body Works, TheStreet.com notes.
LB stock was up 1.65% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
