Aeropostale Inc ( ARO) adopted a poison pill that would be triggered if a stockholder buys 10% of the clothing retailer. With the company facing fire from activist shareholders, the move is considered an attempt to ward off unwanted takeover attempts.
ARO) to sell itself and announce plans to nominate its own slate of directors at the 2014 annual meeting. The activist investment firm believes the retailer could be sold for at least 0.5 to 0.6 times sales, implying a price tag of $14 to $15 a share. Recently, Sycamore Fund, through its indirectly owned firm, Hummingbird LLC, acquired 6.25 million shares or a 7.9% stake in Aeropostale Inc ( ARO). Sycamore, which has over $1 billion under management, took Hot Topic Inc private this year. Quoting Morningstar, Inc. ( MORN) analyst Bridge Weishaar, Sagarika Jaisinghani of Reuters points out Sycamore Partners could be a player who would bid for Aeropostale Inc ( ARO), given its stake in the company and its history of taking troubled retailers private. -By Mani