NEW YORK (TheStreet) -- Shares of Elizabeth Arden Inc. (RDEN) are dropping -17.9% to $22.18 on Thursday as South Korea's LG Household & Health Care Ltd said it is no longer interested in acquiring the U.S. cosmetics firm. Elizabeth Arden announced this week it would embark on extensive restructuring due to mounting losses, according to Reuters.
LG Household said it would move on to look at other opportunities that offered better value but declined to elaborate.
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Separately, TheStreet Ratings team rates ELIZABETH ARDEN INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELIZABETH ARDEN INC (RDEN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."