More Activist Change Headed to Abercrombie & Fitch
More change is coming to Abercrombie & Fitch Co. (NYSE: ANF). Well, maybe. After yesterday’s news reports that it had hired Goldman Sachs to seek strategic alternatives, shares shot up to $38 from $35 on the news because “strategic alternatives”…
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What is driving A&F’s activist efforts is that shares have been down almost 40% over the last year. Shares closed up 1.6% at $38.54 on Thursday and the 52-week trading range is $28.64 to $77.49.
At a value of almost $3.2, the question that has to be asked is how many buyers from private equity can or would step to buy this company. Then there is the question as to whether or not A&F would be worth more or less if it was parceled out in pieces. The retail apparel company has its flagship Abercrombie & Fitch brand plus Abercrombie Kids, as well as the Hollister brand and the girls’ retail brand called Gilly Hicks.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
