A lawsuit was filed for investors in shares of American Greetings Corporation (NYSE:AM) in effort to stop the proposed takeover of American Greetings Corporation and NYSE:AM stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/23/2013 -- An investor in shares of American Greetings Corporation (NYSE:AM) filed a lawsuit against the proposed takeover of American Greetings Corporation at a value of $18.35 per NYSE:AM share.
Investors who purchased shares of the American Greetings Corporation (NYSE:AM) and currently hold any of those NYSE:AM shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:AM investors by agreeing to sell the company too cheaply via an unfair process.
On September 26, 2012, Sep 26, 2012 American Greetings Corporation (NYSE: AM) announced that its Board of Directors has received a non-binding proposal dated September 25, 2012 from Zev Weiss, its Chief Executive Officer, and Jeffrey Weiss, its President and Chief Operating Officer, on behalf of themselves and certain other members of the Weiss family and related parties to acquire all of the outstanding Class A and Class B common shares of American Greetings not currently owned by the them for $17.18 per share.
Then on April 1, 2013, American Greetings Corporation announced that it has signed a definitive agreement under which a newly organized entity owned by the Weiss Family, including the Company's Chairman, Morry Weiss; Director and Chief Executive Officer, Zev Weiss; and Director, President and Chief Operating Officer, Jeffrey Weiss and related persons and entities, will acquire the Company.
Under the agreement, American Greetings Class A and Class B shareholders, excluding the Weiss Family and related entities, will receive $18.20 per share in cash, and, if declared by the Board of Directors, one regular quarterly dividend of $0.15 per share declared and payable in a manner consistent with the Company's past practice. If the transaction closed in July 2013, the targeted closing date, the total cash amount shareholders would receive would be $18.35 per share.
However, the plaintiff claims that the offer is too low and undervalues the company. Indeed, at least one analyst has set the high target price for NYSE:AM shares at $30.00 per share, Furthermore, American Greetings’ financial performance improved recently. For instance, it reported that its Total Revenue rose from $1.59 billion for the 12 months period that ended on Feb. 28, 2011 to $1.69 billion for the 12 months period that ended on Feb. 29, 2012.
In addition, the plaintiff alleges that the takeover process is also unfair to NYSE:AM investors. The plaintiff says that the company's founding family was too close to a purportedly independent board or directors that approved the terms of their $878 million takeover offer.
On April 22, 2013, NYSE:AM shares closed at $18.22 per share.
Those who are current investors in American Greetings Corporation (NYSE:AM) and purchased their American Greetings shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego