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Warnaco Group Inc. Message Board

  • sachshah25 sachshah25 Nov 6, 2012 1:23 PM Flag

    NEWSPAPER ARTICLE - SHAREHOLDER LAWSUIT FILED

     

    Class Challenges Acquisition of Warnaco by PVH

    By STEVE TWEEDY

    (CN) - Warnaco Group. shareholders are challenging a multi-billiondollar takeover in a shareholder class action lawsuit. Under the merger agreement, Under the terms of the agreement, PVH will acquire Warnaco and holders of Warnaco common stock will receive $51.75 in cash and .1822 of a share of PVH common stock for each share of Warnaco common stock

    According to shareholder Rakesh Kapur, who owns over 10,000 shares of Warnaco stock, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to Warnaco and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of Warnaco and its public stockholders," the complaint states. "Among other things, the individual defendants have agreed to sell the company at an unfairly low price."
    Kapur said Warnaco directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of Warnaco's other senior managers and directors at the expense of the company and its public shareholders."
    "Defendants have initiated a process to sell Warnaco that undervalues the company and vests them with benefits that are not shared equally by Warnaco's public shareholders - a clear effort to take advantage of the temporary depression in Warnaco's stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of Warnaco at a price that does not adequately reflect the company's true value."
    The prominant law firm Tripp Levy PLLC represents the class. Tripp Levy PLLC 877-772-3975

    This topic is deleted.
 

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