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Rue21 agrees to go private in nearly $1B deal

NEW YORK (AP) - Clothing and accessories company Rue21 has agreed to be taken private in nearly $1 billion deal with private equity firm Apax Partners.

Shares hit an all-time high Thursday.

Apax will pay $42 per share, a 23 percent premium to Rue21 Inc.'s Wednesday closing price of $34.12. The companies put the deal's total value at $1.1 billion.

Rue21 has about 23.7 million outstanding shares, according to FactSet.

The company's stock jumped $7.75, or 22.7 percent, to $41.87 in midday trading. The shares touched the offer price of $42 earlier in the session.

Rue21's board approved the transaction based on a unanimous recommendation by a special committee made up of three independent directors.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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