An investigation on behalf of investors of rue21, inc. (NASDAQ:RUE) in connection with the proposed takeover was announced and NASDAQ:RUE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/28/2013 -- An investigation on behalf of investors, who currently hold shares of rue21, inc. (NASDAQ:RUE) was announced concerning whether the offer by funds advised by Apax Partners to acquire rue21, inc. for $42.00 per NASDAQ:RUE share and the takeover process are unfair to investors in NASDAQ:RUE shares.
Investors who purchased shares of rue21, inc. (NASDAQ:RUE) prior to May 20, 2013, and currently hold any of those NASDAQ:RUE 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 rue21, inc. breached their fiduciary duties owed to NASDAQ:RUE investors in connection with the proposed acquisition.
On May 23, 2013, rue21, inc. (Nasdaq:RUE) and Apax Partners announced an agreement under which funds advised by Apax Partners will acquire all outstanding shares of rue21 for $42.00 per share in cash. The transaction is valued at approximately $1.1 billion.
However, the investigation by a law firm concerns whether the offer is too low for NASDAQ:RUE stockholders.
In addition, given that the SKM II funds, which collectively own approximately 30% of the outstanding shares of rue21, have already entered into a support agreement to vote their shares in favor of the transaction with Apax Partners, the investigation focuses on whether the rue21 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.
rue21, inc. reported that its Total Revenue rose from $525.60 million for the 52 weeks period that ended on Jan. 30, 2010 to $901.89 million for the 53 weeks period that ended on Feb. 2, 2013 and that its respective Net Income increased from $22.02 million to $43.90 million.
Shares of rue21, inc. closed on May 24, 2013 at $42.03 per share.
Those who are current investors in rue21, inc. (NASDAQ:RUE), have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com