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
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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.