Shares of Abercrombie & Fitch (ANF) - Get Report were climbing nearly 7% during afternoon trading on Wednesday after Dow Jones reported that Cerberus and American Eagle (AEO) - Get Report are working on a takeover bid for the retailer.

Earlier this month the teen apparel retailer confirmed that it was exploring a sale.  American Eagle was rumored to be one of the most eager bidders, according to the  Wall Street Journal.

Express (EXPR) - Get Report  had also been rumored to be interested in a purchase of Abercrombie.  

Shares of American Eagle were climbing over 3% after the report.  

Retail's downturn giving you the blues? Jim Cramer has a list of retailers that are currently oversold, giving investors a leg up one of the market's most volatile sectors.