San Diego, CA -- (SBWIRE) -- 05/07/2012 -- An investigation on behalf of investors in NASDAQ:CHRS shares was announced concerning whether the offer by Ascena Retail Group to acquire Charming Shoppes, Inc. at $7.35 per share and the takeover process are unfair to investors in NASDAQ:CHRS shares.
Investors who purchased shares of Charming Shoppes, Inc. (NASDAQ:CHRS) prior to May 2, 2012 and currently hold any of those NASDAQ:CHRS shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of Charming Shoppes, Inc. breached their fiduciary duties owed to NASDAQ:CHRS investors in connection with the proposed acquisition.
On May. 2, 2012, Ascena Retail Group, Inc. (NASDAQ: ASNA) and Charming Shoppes, Inc. (NASDAQ: CHRS) announced that they have entered into an agreement under which Ascena Retail Group will acquire Charming Shoppes in a cash transaction valued at approximately $890 million. Ascena Retail Group has agreed to make a cash tender offer for all outstanding shares of Charming Shoppes common stock at a price of $7.35 per share.
The Chairman of the Board of Charming Shoppes said that the $7.35 per share consideration represents a premium of 25% to the closing market price of Charming Shoppes common stock on May 1, 2012 and an 89% premium to the unaffected share price of Charming Shoppe's common stock on November 30, 2011, the day prior to our announcement of Charming Shoppes’ strategic review process.
Following the takeover news NASDAW:CHRS shares jumped from $5.90 per share on Tuesday to $7.30 on Wednesday, May 2, 2012
However, at least one analyst has set the high target price for NASDAQ:CHRS at $9.00 per share.
Therefore the investigation for NASDAQ:CHRS investors concerns whether the proposed transaction is unfair to Charming Shoppes stockholders. Specifically, the investigation focuses on whether the Charming Shoppes Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in Charming Shoppes, Inc. (NASDAQ:CHRS) and purchased their NASDAQ:CHRS 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