There is talk that the founder of Lululemon Athletica Inc. (LULU:US), Dennis “Chip” Wilson, wants to sell the yoga-gear retailer. This info may have sparked the interest of several potential buyers including VF Corp., the owner of the Vans and North Face brands, as well as Adidas AG and Nike Inc.

 

According to Bloomberg, recent problems for the retailer have sent the shares down 36 percent this year, heading for the worst annual performance since 2008.

 

However a takeover could be valued at $50 a share, according to a May estimate from Omar Saad of International Strategy & Investment Group LLC.

 

Bloomberg states: Open interest in Lululemon options (LULU:US) has increased 40 percent since mid-May, with traders owning about 1.4 calls for every put. Six of the 10 most-owned options are bullish, with $45 calls expiring this month attracting the highest ownership among them.

 

Liz Dunn, a New York-based senior consumer analyst for Macquarie Group, said in a phone interview July 8, “Lululemon is too expensive to entice offers right now.”

To see the full article go to: http://www.bloomberg.com/news/2014-07-24/lululemon-traders-say-namaste-to-takeover-speculation-options.html