Blair Corporation (AMEX:BL) shares moved up $1.70, or 4.71%, to $37.80 after 8.1% holder Golden Gate Capital delivered a preliminary acquisition proposal to acquire all of the outstanding shares of Blair $37.50 per share in cash. Blair's chairman, Craig Johnson, said, "Since receiving the letter we have been in discussions with this group. Although it is premature to comment further, I do want to emphasize that we will continue to act in the best interest of the company and its stakeholders." Currently, the company is trading above enterprise value with $4.22 per share in cash and no debt. Given these favorable buyout conditions and the fact that the company's shares are down 12% so far this year (even after today's move), shareholders may demand a higher premium. This sentiment was also clearly conveyed today as shares are currently trading $0.30 above the buyout offer's price. Regardless, this is definitely a stock to watch as this situation unfolds.

Blair Corporation's principal activity is to market fashion apparel for men and women, as well as home furnishings, primarily through mail and the Internet. Catalogs and letters depicting the current styles of women and men's wear and home products are mailed directly to existing and prospective customers in the United States. The apparel line consists of coordinates, dresses, tops, pants, skirts, lingerie, sportswear, suits and shoes for women and suits, shirts, outerwear and active wear for men. Home products include linen, furniture, bath accessories, kitchenware, gifts and personal care items. Popular brands include the Crossing Pointe line and the Jane Seymour Signature Collection. The Group also operates three retail stores, two in Pennsylvania and one in Delaware. The Group markets products manufactured by domestic, as well as international suppliers that are sourced through international trade offices located in Singapore, Hong Kong, Taiwan, India, Korea and China.

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