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Ann Inc. stays focused on value


Late last month, Ann Inc. received an open letter from activist investors Engine Capital and Red Adler urging the company to sell at a substantial premium above current stock price. The company has today publicly responded to the letter, stressing its board is “very active and consistently has been, and remains, focused on enhancing shareholder value.”

Ann Inc. also said its board regularly reviews all options and uses a financial adviser to help evaluate them.

“While the board appreciates the input of Engine Capital and Red Alder, none of the analyses contained in their presentation is new to the board,” read the release. “The conclusions that one draws from these analyses depend heavily on the various assumptions made. The board continues in a very deliberate manner and on an informed basis to consider and determine the courses of action that are in the best interests of all of its shareholders.”

Engine Capital and Red Alder, who collectively own more than 1% of the outstanding shares of Ann Inc., previously stated that the company is “deeply undervalued” and could be worth $50 to $55 a share to an acquirer, or a 33- to 46.5% premium to its stock price as of Aug. 25.

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