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Wednesday, July 2, 2014

Lululemon founder's advisers in talks on possible buyout-WSJ, (NASDAQ: LULU)

Lululemon Athletica Inc founder Dennis Wilson's advisers have been talking to private equity firms including Leonard Green & Partners to find out if they are interested in buying the fashionable yoga gear maker, the Wall Street Journal reported citing people familiar with the matter.The takeover would face trouble given the premium that would be needed over the company's $6 billion market capitalization, the report said, adding that there is no deal in the works.("We have seen a lot of premature speculation about transactions that Chip Wilson may or may not be considering. Chip will decide if and when he wants to do a transaction of any sort," a spokesman on behalf of founder Chip Wilson said in an email reply to Reuters.The Journal had reported on June 22 that Wilson was building a team of advisers that would likely include Goldman Sachs and could launch a proxy fight or team up with a private equity firm in a buyout.

lululemon athletica inc. is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. Shares of LULU traded higher by 2.81% or $1.13/share to $41.40. In the past year, the shares have traded as low as $36.26 and as high as $77.75. On average, 3585200 shares of LULU exchange hands on a given day and today's volume is recorded at 2569590.