AEROPOSTALE $8.14 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646- 485-5410; www.aeropostale.com; Shares outstanding: 78.5 million; Market cap: $639.7 million; No dividends paid) has adopted a shareholder rights plan. These schemes are often called poison pills, because they aim to thwart hostile takeovers by issuing many new shares to existing shareholders if someone tries to take over a company.
A number of private equity firms now hold interests in Aeropostale, and they are pushing it to put itself up for sale so one or more of them can take it private.
It’s uncertain which direction Aeropostale will take, or whether any of its private equity shareholders can force a sale. However, their involvement does highlight its underlying value and turnaround potential.
Aeropostale is still a hold.
