J.Crew Attracts Unlikely Bidders?
Bloomberg reported on Wednesday that the two retailers are eyeing the company, citing anonymous sources close to the matter.
Whatever the claims, the actual probability of either of these companies buying J.Crew is very low, according to analysts, who say the report is "absolutely ridiculous."
"[CEO Mickey] Drexler would be out the door if Sears picked up the company," Wall Street Strategies analyst Brian Sozzi says.While Urban Outfitters has said in the past that it is open to making acquisitions, it is looking for smaller concepts to add to its portfolio, Needham analyst Christine Chen says. "Size wise it would be too big and J.Crew is a direct competitors with a lower growth concept," she said. Nonetheless, shares of J.Crew are gaining 3.3% to $44.48 on the news. J.Crew received a buyout offer of $3 billion from TPG Capital and Leonard Green. Any other bidders who want to throw their hat in the ring have until Jan. 15 to make an offer. --Written by Jeanine Poggi in New York.
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