NEW YORK — Abercrombie & Fitch Co. said it neither recommends nor endorses an unsolicited minitender offer from a private Canadian investment firm to buy up to 2.5 million shares of its class A common stock. The firm, TRC Capital Corp., provided Abercrombie with offer to purchase documents dated Sept. 8 in which it said it will buy the shares at $30 each in cash, the retailer said in a statement Friday.
The offer, however, represents a 5.4 percent discount to Abercrombie’s closing stock price of $31.71 on Sept. 7. Abercrombie said it is not affiliated with TRC, and emphasized that stockholders who have already tendered shares can withdraw them before the offer’s expiration on Oct. 7, according to TRC’s documents. Abercrombie, which urged investors to check current market quotes, told investors to “exercise caution” with respect to TRC’s offer. Shares of Abercrombie closed at $33.37, down 3 cents, in trading Friday on the New York Stock Exchange. The stock has traded as high as $39.46, and as low as $23.07 over the past 52 weeks.
The minitender offer is for approximately 2.6 percent of A&F’s 94.6 million shares outstanding.
This story first appeared in the September 20, 2004 issue of WWD. Subscribe Today.