A lawsuit was filed for investors in shares of Kate Spade & Co (NYSE:KATE) in connection with the proposed takeover and NYSE:KATE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/12/2017 -- The Shareholders Foundation announces that an investor, who currently holds shares of Kate Spade & Co (NYSE:KATE), filed a lawsuit in effort to halt the proposed takeover of Kate Spade & Co. by Coach, Inc for $18.50 per share.
Investors who purchased shares of Kate Spade & Co (NYSE:KATE) and currently hold any of those NYSE:KATE shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:KATE stockholders by agreeing to sell Kate Spade & Co cheaply via an unfair process to Coach, Inc.
On May 8, 2017, Coach, Inc. (NYSE:COH) announced it has signed an agreement to acquire
Kate Spade & Co (NYSE:KATE). Under the terms of the transaction Kate Spade & Co (NYSE:KATE) shareholders will receive $18.50 per share in cash for a total transaction value of $2.4 billion.
However, plaintiff claims that the proposed consideration NYSE:KATE shareholders will receive is grossly inadequate and undervalues Kate Spade & Co. Indeed, at least one analyst has set the high target price for NYSE:KATE shares at $26.00 per share. Kate Spade & Co reported that its Total Revenue rose from over 41.24 billion for the 52 weeks period that ended on January 2, 2016 to over $1.38 billion for the 52 weeks period that ended on December 31, 2016 and that its Net Income over those respective time periods grew from $21.71 million to $153.58 million. Shares of Kate Spade & Co (NYSE:KATE) reached as high as $39.69 per share in July 2014.
In addition, the plaintiff alleges that the process is also unfair NYSE:KATE stockholders. The plaintiff claims that the defendants agreed to preclusive deal protection devices such as a no solicitation and a $83 million termination fee provision, that deter other potential buyers from making a superior offer.
On June 9, 2017, NYSE:KATE shares closed at $18.47 per share.
Those who are current investors in Kate Spade & Co shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com