San Diego, CA -- (ReleaseWire) -- 05/23/2012 -- An investor in NASDAQ:GOLF shares filed a lawsuit against members of the board of directors in effort to block the proposed sale of Golfsmith International Holdings, Inc. to Golf Town at $6.10 per NASDAQ:GOLF shares.
Investors who purchased shares of Golfsmith International Holdings, Inc. (NASDAQ:GOLF) prior to May 14, 2012 and currently hold any of those NASDAQ:GOLF shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:GOLF investors arising out of the attempt to sell Golfsmith International Holdings to Golf Town at an unfair price via an unfair process.
On May 14, 2012, Golf Town and Golfsmith International Holdings, Inc. (NASDAQ: GOLF) announced that they have signed a merger agreement, pursuant to which Golf Town will acquire Golfsmith International Holdings for US $6.10 per share in cash.
However, the plaintiff alleges that the $6.10offer is unfair to NASDAQ:GOLF stockholders and undervalues the Golfsmith International Holdings, Inc.
In fact, NASDAQ:GOLF shares jumped from $4.71 per share on Friday to $6.16 per share on Monday, May 14, 2012, thus slightly above the current offer. In additional at least one analyst has set a price target for NASDAQ:GOLF stock at $7.50 per share. In addition, Golfsmith International Holdings’ financial performance improved over the past recent years. It reported that its Total Revenue increased from $338.03million for a 52weeks period ending on Jan 2, 2010 to $387.27million for the 52weeks period ending on December 31, 2011 and its Net Loss decreased over the respective time frames from $3.54million to $0.09million.
Furthermore, the plaintiff claims that the proposed transaction is unfair to NASDAQ:GOLF stockholders. Specifically, the plaintiff says that the terms of merger agreement, including a $3.8 million break up fee and a no-shop provision makes it impossible for NASDAQ:GOLF stockholders to realize the true value of Golfsmith International Holdings, Inc.
Those who are current investors in Golfsmith International Holdings, Inc. (NASDAQ:GOLF) and purchased their NASDAQ:GOLF shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego