FREDERICK’S STOCK JUMPS 49.1%
NEW YORK — Class A shares of Frederick’s of Hollywood Inc. on Tuesday catapulted 3 3/8 to 10 1/4 — a 49.1 percent one-day gain — as Wall Street apparently expects a bidding war to break out for the lingerie retailer and catalog firm.
About 209,800 shares exchanged hands on the New York Stock Exchange versus average daily volume of about 26,000.
Knightsbridge Capital Corp., which signed a letter of intent to acquire Frederick’s of Hollywood in June, on Monday hiked its bid to $7.75 a share from $6.90 a share, as reported. The offer matched a bid made by Veritas Capital Inc., a merchant banking and private equity firm. Frederick’s of Hollywood accepted the Knightsbridge $7.75 bid and said it would not consider any other bids.
The stock didn’t trade Monday because of the pending announcement from Knightsbridge. Frederick’s class B shares, which are nonvoting, picked up 13/16 Monday to 7 3/4.
Frederick’s has been on the selling block for about a year.