rue21 results expected to bring short squeeze at FBR Capital FBR expects a short squeeze in rue21 shares after the company repored strong Q1 results given the high short interest in the name. The firm raised its price target for shares to $32 from $26 but keeps a Market Perform rating on the stock.
News For RUE From The Last 14 Days
Check below for free stories on RUE the last two weeks.
rue21 agrees to be acquired by Apax Partners for $42.00 per share rue21 announced a definitive agreement under which funds advised by Apax Partners will acquire all outstanding shares of rue21 for $42.00 per share in cash. The transaction is valued at approximately $1.1B. The transaction price represents a premium of approximately 23% to yesterday's closing share price and approximately 42% to the 90-day volume weighted average price. The rue21 board approved the agreement based on the unanimous recommendation of a Special Committee comprised of three independent directors. As part of the agreement, the Special Committee, with the assistance of its advisors, will conduct an initial 40-day "go-shop" process starting today during which it will actively solicit, evaluate and potentially enter into negotiations with any parties willing to offer a superior acquisition proposal. The go-shop process provides for a low termination fee of 1% to be paid to Apax. rue21 management, including Bob Fisch, has not entered into any arrangements with Apax and is willing to work with any party that emerges through the go-shop process.
Subscribe for More Information
