Gap not likely to garner more than USD 25 a share in sale - report

Gap, the California listed retailer that has hired Goldman Sachs for advising, is not likely to garner more than USD 25 a share in a sale, reported the Wall Street Journal. The report, citing option traders, reported option trading shows that most traders do not expect an offer to be higher than USD 25 a share.
Meanwhile a report in the paper's Breaking Views column, reported Gap may be ideal for a LBO given it has USD 2bn in cash and does not need more. According to the unsourced report, Gap could be valued at USD 17bn net of cash, in an LBO. The report speculated Gap could borrow USD 12bn with suitors having to come up with USD 5bn. The report was part of the paper's Options column.
Gap has a market capitalization of USD 16.4bn.