Abercrombie & Fitch's Stock Jumps After WSJ Report Of American Eagle, Cerberus Buyout Interest

Shares of Abercrombie & Fitch Co. jumped 6.6% in afternoon trade, after The Wall Street Journal reported that rival American Eagle Outfitters Inc. and private-equity firm Cerberus Capital Management were working on a joint buyout bid for the troubled apparel retailer. The WSJ report, citing people familiar with the matter, could be reached in about a month. In the meantime, other parties remain in the auction for Abercombie, including fellow apparel retailer Express Inc. and other private-equity firms, the WSJ report said. Earlier this month, Abercrombie's stock rallied after the WSJ reported that Abercrombie was in mergertalks with at least two interested buyers. Abercrombie's stock has climbed 8.3% year to date, while American Eagle shares have shed 25%, the SPDR S&P Retail ETF has lost 8.2% and the S&P 500 has gained 7.2%.