Abercrombie & Fitch's Stock Plunges After Terminating Potential Buyout Talks

Shares of Abercrombie & Fitch Co. plunged 11% toward a three-month low in premarket trade Monday, after the specialty apparel retailer said it terminated discussions regarding a potential buyout deal. "After a comprehensive review of all relevant factors, with the assistance of our financial advisor, the A&F Board of Directors determined that the best path to enhance value for stockholders is the rigorous execution of our business plan," said Executive Chairman Arthur Martinez. "We believe in the prospects for our business and the opportunities for our brands." The company had said in May that it had started preliminary discussions with several parties regarding a potential deal. The stock had edged up 1.3% year to date through Friday, but had fallen 36% over the past 12 months. In comparison, the SPDR S&P Retail ETF had slipped 8.5% over the past year while the S&P 500 had rallied 13.9%.