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Krispy Kreme Doughnuts, Inc. Message Board

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  • fisk007 fisk007 Jan 14, 2013 12:02 PM Flag

    Krispy Kreme Doughnuts, Inc. Adopts Shareholder Protection Rights Agreement

    KKD management KNEW that the company would most likely become a very attractive target 3 years ago and took this step to protect them from being taken over at an unfair price.

    They have since built a very strong operation.

    Would have to wonder if they will let the term of this share holder rights plan expire this week.

    If so - maybe they feel that it would invite / or allow reasonable bids for the company at this time.

    They were trading at a completely unreasonable level of $3 per share at the time they adopted the plan in 2010.

    Now at just under $12 per share they probably feel that they are in a position of being able to entertain an offer with a healthy premium attached that reflects the BRAND upside potential in the years ahead.

    As the Winston Salem article pointed out this morning - they are in a very strong position to accelerate growth and potentially realize significant share price appreciation over the coming 2-3 years ++.

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    • it was in response to GMCR chairman accumulating 11 %, this is a new era now, they need to renew it asap.

      • 1 Reply to thelyingherd
      • I do not think it was in "response" to GMCR's CEO Rober Stiller accumulating a stake in KKD.

        Here is why:

        Stiller INITIALLY announced a 5%+ stake in KKD in January 2011. Fully ONE YEAR AFTER they adopted the poison pill in January 2010.

        Then Stiller upped his stake to 11% in August of 2011.

        Frankly - it looks like if anything Stiller wanted to get ahold of shares well before the market realized how well KKD would do in 2011 and beyond.

        He seems like he was correct.

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