This has been talked about off and on ever since it emerged from bankruptcy three years ago. FOH Holdings, the parent company of Frederick's of Hollywood, is merging with NY-based sleepwear maker Movie Star Inc. Under the deal, Frederick’s shareholders will receive 23.7 million shares of Movie Star common stock - worth $30.6 million based on Monday’s closing price of $1.29. Movie Star shareholders also have rights to purchase $20 million of new Movie Star shares. This allows Frederick’s to go public without dealing with an IPO. The company has moved away from its truly raunchy ways, though the merchandise still has a racy edge (why would anyone want to shop at Frederick's if it didn't have at least a bit of naughtiness?). Shares of Movie Star, which supplies department stores and discount retailers with women’s sleepwear, robes and underwear, were up nearly 12 percent at the close (though that only amounts to $1.43 a share).