DOW JONES NEWSWIRES
Abercrombie & Fitch Co. (ANF) delayed its annual meeting,
which had been scheduled for Monday, as the teen retailer said it
has been unable to obtain a strong consensus in favor of its
reincorporation proposal.
The company, which hopes to move to Delaware from Ohio, has
faced criticism over the plan from the New York Times' Deal
Professor, which has questioned the timing of the proposal and
suggested it may be intended to position Abercrombie for a
management buyout.
The retailer addressed the criticism in a Securities and
Exchange Commission filing last week, saying the proposal followed
a year and a half of review and should improve the company's
governance profile. Many companies incorporate in Delaware to take
advantage of favorable tax law.
Abercrombie said Monday it would delay the meeting to continue
discussions with shareholders.
The retail sector has been home to a growing amount of buyout
activity in recent months, much of which has been on behalf of
private-equity firms. Abercrombie and peer American Eagle
Outfitters Inc. (AEO) are among the names often speculated as
potential targets, particularly following a $3 billion takeout bid
for rival J. Crew Group Inc. (JCG) from a team that included its
chief executive in November.
Shares closed Friday at $56.81 and were inactive premarket. The
stock is up 56% in the past year.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356;
lauren.pollock@dowjones.com