A lawsuit was filed for investors in shares of Kenneth Cole Productions (NYSE:KCP) against the going private offer and NYSE:KCP stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/29/2012 -- The Shareholders Foundation announces that a lawsuit was filed for stockholders of NYSE:KCP shares in effort to stop the proposed takeover of Kenneth Cole Productions for $15 per share.
Investors that are current investors in Kenneth Cole Productions (NYSE:KCP) and purchased NYSE:KCP shares prior to February 24, 2012, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
On Feb. 24, 2012, Kenneth D. Cole, Chairman and Chief Creative Officer of Kenneth Cole Productions, Inc, announced that he has proposed to acquire through a merger transaction 100 percent of the outstanding publicly held shares of common stock of Kenneth Cole Productions, Inc. (NYSE: KCP).
However, the plaintiff alleges that the $15offer is unfair to the NYSE:KCP stockholders and undervalues Kenneth Cole Productions. In fact, following the takeover proposal shares of Kenneth Cole Productions (NYSE:KCP) jumped from $13.07 per share on Thursday to $15.90 on Friday, February 24, 2012 and at least one analyst has set the high target price for NYSE:KCP shares at $17 per share, both above the $15 offer.
Additionally, Kenneth Cole Productions’ performance over the past recent years increased. Its annual Revenue rose from $410.40million in 2009 to $457.33million in 2010 and its Net Loss of $63.24million in ’09 turned into a Net Income of $2.08million in 2010. Its third quarter revenue rose from $119.04million in 2010 to $128.01million in 2011 and its third quarter Net Income increased from $2.02million in 2010 to $5.76million in 2011.
Furthermore, the plaintiff alleges the process is unfair to NYSE:KCP stockholders. Indeed, Mr. Cole currently owns approximately 47% of the common stock (representing approximately 89% of the voting power) of the Company.
Those who are current investors in Kenneth Cole Productions (NYSE:KCP) and purchased your Kenneth Cole Productions shares prior to February 24, 2012, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego