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Wednesday, April 23, 2014

South Korea's LG Household considers bid for Elizabeth Arden, (NASDAQ: RDEN)

South Korea's LG Household & Healthcare Ltd said it is considering a bid for U.S. cosmetics firm Elizabeth Arden Inc, an acquisition that would give it globally recognized luxury brands and would be its most ambitious to date.Elizabeth Arden's shares rose as much as 17 percent on the Nasdaq on Wednesday.The company, which has a market value of $845 million, has seen its sales hit by a much weaker-than-expected North American retail market as well as deep industry discounting in key European markets that have eroded profit margins. Its shares have fallen 20 percent so far this year.LG Household, keen to expand its product lines and reach, has completed 12 acquisitions since 2007, though the biggest of these has been a relatively small $375 million purchase of a local retailer.

Elizabeth Arden, Inc. is a beauty products company with a range of portfolio of fragrance, skin care and cosmetics brands. Shares of RDEN traded higher by 12.5% or $3.555/share to $32.00. In the past year, the shares have traded as low as $23.45 and as high as $49.47. On average, 306719 shares of RDEN exchange hands on a given day and today's volume is recorded at 415287.



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