Two retailers jumped today on M&A buzz.
Dollar store chain 99 Cents Only Stores (NDN) had been pursued by at least two suitors, but just agreed to a $22-per-share offer from Ares Management and the Canada Pension Plan Investment Board. The stock was trading up 4.5% at $21.41, indicating some skepticism about the deal on the part of investors. In the past couple of years, dollar stores have been a hot target for private equity firms, with every company in the sector being pursued or bought out.
Jones Group (JNY) is working on a deal to sell its jeanswear division to private label apparel company Delta Galil Industries for about $350 million to $400 million and plans to use the money to buy back stock. The owner of 9 West and other brands rose 12% in morning trading.
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