An investor in NYSE:KCP shares filed a lawsuit in State Court in effort to block 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). The proposal values the total equity of the Company at approximately $280 million. The offer letter stated that the proposed price represents a premium of approximately 26% over the average closing price of the Company’s Class A common stock for the past 45 trading days
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.
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 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