It's been a very tough year for shareholders of Eddie Bauer (NASDAQ: EBHI). Back in December 2005, the stock was trading for about $23 a share. Now the company has decided to go private – at $9.25. The private equity investors include Sun Capital Partners and Golden Gate Capital.
The price certainly offers a measly premium for shareholders. In fact, the stock is up only 1.5% on the news.
Then again, Eddie Bauer is in the midst of a turnaround. Perhaps by going private the company can take the tough medicine it needs to fix things up.
Given the low price, might there be competing bids? Probably not. Keep in mind that when Eddie Bauer put the "for sale" sign on the company in May, there was very little interest among investors.
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.
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