Daily Management Review

Abercrombie & Fitch stops merger talks


07/11/2017


Shares of Abercrombie & Fitch fell by almost 20%, after the retailer announced termination of negotiations with several potential buyers. Arthur Martinez, the group’s executive director, informed about the crumbed deal.



Iflwlou製作
Iflwlou製作
As a result, this Monday has become the worst trading day for the American youth clothing retailer since November 2000.

Arthur Martinez said that the board of directors, supported by financial advisers, comprehensively considered all the factors. The company’s management concluded that the best way to increase Abercrombie & Fitch’s value for shareholders is strict implementation of the business plan, and everything possible will be done to implement the financial recovery plan. He also added that the concern will adhere to decisive actions to increase profitability and share prices. Arthur Martinez said he believes in business prospects and potential opportunities of the company's brands.

American Eagle and Express companies showed interest in buying a stake in Abercrombie & Fitch this spring. Jefferies’ expert Randal Konik said he was not surprised that the deal eventually fell through, as the affairs in the clothing division are not going well and the future of this business remains uncertain. He also added that only a small number of potential sponsors showed a really serious interest in the deal with Abercrombie & Fitch. This can be explained by the fact that benefit from the merger with the group will not cover costs that the buyer will incur as a result of an agreement with the company. And Abercrombie's shareholders would in any case lose their profits if the deal was approved, Randal Konik added.

source: cnbc.com






Science & Technology

How China became a pioneer of the solar industry

CNBC: Intel leaves the wearable gadgets market

Oculus Rift falls in price…again

Ukraine Police Official Says Likely Cover For Malware Installation Was Global Cyber Attack: Reuters

Researchers See 'Wannacry' Link As Another Cyber Attack Sweeps Globe

AEON and IBM to create a blockchain platform

Toyota & Cartivator Are Building Flying Cars To Light Up The Olympic Flame Of 2020

Stock trading computers are not a future anymore

Temper Technology With Humanity - Apple's Cook Tells MIT Graduates

As Spying And Crime Tools Mix, Blame Game For Cyber Attacks Grows Murkier

World Politics

World & Politics

Its South China Sea Territory Being Protected By Indonesia From 'Foreign' Threats

A Swarm-Like Attack From North Korea Could ‘Overwhelm’ South Korea's THAAD Missile Shield

Powerty in Italy tripled in 10 years

Hackers steal a businessman's reputation in Sweden

PWM reveals best citizenship-by-investment programs

Austria gathers troops to shelter itself against refugees

In Thirty Years Human Beings Will Work Only 'Four Hour A Day', Predicts Jack Ma

Trump to speak for America's dominance in the energy sector