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Monday, August 25, 2014

Activist investor presses apparel retailer Ann Inc for sale, (NYSE: ANN)

An activist investor urged women's apparel retailer Ann Inc to sell itself, saying it could fetch as much as $2.52 billion, failing which each of the company's board members should purchase back stock as a "sign of confidence".Engine Capital LP, which along with Red Alder LLC controls "in excess of 1 percent" of Ann's stock, said in a joint letter to the company's board that Ann would be worth between $50 and $55 per share to a private equity firm or even more to a "strategic buyer".The valuation represents a premium of as much as 47 percent to Ann's Friday closing price of $37.52, which valued the owner of the Ann Taylor and Loft brands at $1.72 billion.An offer for $50-$55 per share would be worth about $2.29 billion to $2.52 billion, according Reuters calculations based on Ann's shares outstanding as of Aug. 2.

ANN INC., through its wholly owned subsidiaries, is a specialty retailer of women?s apparel, shoes and accessories sold primarily under the Ann Taylor and LOFT brands. Shares of ANN fell by 3.32% or $-1.29/share to $37.52. In the past year, the shares have traded as low as $30.71 and as high as $43.61. On average, 667511 shares of ANN exchange hands on a given day and today's volume is recorded at 2298844.