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Monday, December 22, 2014

CORRECTED-American Apparel confirms takeover offer, sets new "poison pill", (AMEX: APP)

Struggling American Apparel Inc, which fired controversial Chief Executive Dov Charney last week, said it was evaluating a proposed takeover and announced the appointment of a new head of the board, sending its shares up in early trade.The clothing retailer and manufacturer said the proposed offer - from a party it did not identify - was pitched at $1.30 to $1.40 per share, which would value the company at $226 million-$243 million.The Wall Street Journal reported last week that private equity firm Irving Place Capital was interested in making a bid at $1.30 to $1.40 per share.American Apparel's shares rose 8.4 percent to $1.16 in early trading on Monday.

American Apparel, Inc. is a vertically integrated manufacturer, distributor, and retailer of branded fashions basic apparel and accessories for women, men, children and babies. Shares of APP traded higher by 5.61% or $0.06/share to $1.13. In the past year, the shares have traded as low as $0.46 and as high as $1.45. On average, 1580810 shares of APP exchange hands on a given day and today's volume is recorded at 5674344.