A lawsuit was filed for investors in NYSE:KKD shares in connection with the proposed takeover of Krispy Kreme Doughnuts and NYSE:KKD stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/16/2016 -- An investor in NYSE:KKD shares filed a lawsuit in effort to halt the proposed takeover of Krispy Kreme Doughnuts for $21.00 per share.
Investors who purchased shares of Krispy Kreme Doughnuts (NYSE:KKD) and currently hold any of those NYSE:KKD 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:KKD stockholders by agreeing to sell Krispy Kreme Doughnuts too cheaply via an unfair process to JAB Beech Inc.
On May 9, 2016, Krispy Kreme Doughnuts (NYSE:KKD) and JAB Beech Inc., an indirect controlled subsidiary of JAB Holding Company ("JAB") in which BDT Capital Partners is a minority investor alongside JAB, announced that the companies have entered into a definitive merger agreement under which JAB Beech will acquire Krispy Kreme Doughnuts (NYSE:KKD) for $21 per share in cash, or a total equity value of approximately $1.35 billion.
However, plaintiff claims that the proposed consideration NYSE:KKD shareholders will receive is grossly inadequate and undervalues Krispy Kreme Doughnuts. Indeed, at least one analyst has set the high target price for NYSE:KKD shares at $24.00 per share and after the takeover announcement shares of Krispy Kreme Doughnuts (NYSE:KKD) reached in the open market as high as $21.24 per share. Furthermore, Krispy Kreme Doughnuts reported that its Total Revenue rose from $490.33 million for the 52 weeks period that ended on February 1, 2015 to $518.71 million for the 52 weeks period that ended on January 31, 2016 and that its Net Income for those respective time periods increased from $30.06 million to $32.40 million. In addition, the plaintiff alleges that the process is also unfair to Krispy Kreme Doughnuts stockholders.
On May 13, 2016, NYSE:KKD shares closed at $21.14 per share.
Those who are current investors in Krispy Kreme Doughnuts 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