Aug 25 Activist Investor Engine Capital LP wants
women's apparel retailer Ann Inc to sell itself, which
it believes could fetch around $2.5 billion, the Wall Street
Journal reported, citing people familiar with the matter.
Engine Capital, which along with a partner controls more
than 1 percent of Ann stock, believes a strategic or private
equity buyer would be willing to pay between $50 and $55 a share
for the women's retailer, the Journal reported. (on.wsj.com/YSWew3)
Ann Inc's shares closed at $37.52 on Friday on the New York
Ann, the parent of the Ann Taylor and Loft brands, last week
reported a 2.3 pct fall in second-quarter same-store sales, hurt
by lower traffic at its Loft chain and said it expected
third-quarter same-store sales growth to be flat to slightly
The investors have been in talks with Ann's management for a
few weeks but plan to launch a public campaign because they
don't believe the company is moving fast enough, the newspaper
Ann, in a written statement, said it was open to
communications with its shareholders and that the board and
management team were "committed to creating value" for all
shareholders, the Journal reported.
Earlier this year, private-equity firm Golden Gate Capital
disclosed a 9.5 percent stake in Ann and said it believed the
company's stock was significantly undervalued.
Both Ann and Engine Capital were not immediately available
for comment outside regular U.S. business hours.
(Reporting by Arnab Sen in Bangalore; Editing by Gopakumar