Ahead of the Bell: Ann shares jump
NEW YORK (AP) — Shares of Ann Inc., which owns Ann Taylor and Loft stores, jumped before the markets opened Friday after a private equity firm said it bought a stake in the retailer.
In a government filing late Thursday, Golden Gate Capital disclosed that it bought a 9.5 percent stake in Ann. The investment makes it Ann's biggest shareholder.
Golden Gate Capital said in a letter to Ann's management that it believes the retailer's shares are undervalued. It also said that the retailer is "well-managed" and that it looks forward to working with it to boost its share price.
Ann said in a statement that it welcomes the new investor.
Shares of Ann rose $3.67, or 9.9 percent, to $40.90 in premarket trading about 45 minutes before the markets opened.
If those gains hold, it will be the stock's highest point in more than 7 years. The last time Ann's stock reached $40 was in November 2006.