Fanning the flames of a rumored takeover by Fast Retailing, share prices in Gap Inc rose nearly 8%, to $33.80, last Friday. Negotiations between the two companies are unconfirmed by both parties–a Gap spokesperson told just-style that “We do not comment on rumor or speculation,” and Fast Retailing has not responded to requests for comment.
The rumor can be traced to a report published by financial news service StreetAccount, which stated that their reporters had “heard speculation” about the Japanese retail giant’s interest in Gap.
The wild leap in stock prices is due, no doubt, to investor confidence in Fast Retailing, which operates the popular clothing brands Uniqlo, Helmut Lang, and Theory, and recently announced plans to acquire a majority stake in fashion firm J Brand. Last month, the company reported “considerable gains” in its first quarter, and predicted record-breaking sales and profits in it current financial year.