A lawsuit was filed by an investor in shares of Saks Inc (NYSE:SKS) in effort to halt proposed takeover and NYSE:SKS stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/07/2013 -- An investor, who currently holds shares of Saks Inc (NYSE:SKS), filed a lawsuit in effort to halt the proposed takeover of Saks Inc by Hudson's Bay Company for $16.00 per NYSE:SKS share.
Investors who purchased shares of Saks Inc (NYSE:SKS) prior to July 29, 2013 , and currently hold any of those NYSE:SKS 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 NYSE:SKS stockholder arising out of the attempt to sell Saks Inc too cheaply via an unfair process to Hudson’s Bay Company.0
On July 29, 2013, Hudson's Bay Company and Saks Incorporated announced that they have entered into a merger agreement whereby Hudson's Bay Company will acquire Saks for US$16.00 per share in an all-cash transaction valued at approximately US$2.9 billion, including debt.
However, the plaintiff alleges that the $16-offer is too low and undervalues the company. Indeed, at least one analyst has set the high target price for NYSE:SKS at $18.50 per share. Furthermore, Saks’ financial performance improved lately. For instance, Saks Inc reported that its Total Revenue rose from over $2.63 billion for the 52 weeks period that ended on Jan. 30, 2010 to over $3.14 billion for the 53 weeks period that ended on Feb. 2, 2013 and that its Net Loss of $57.92 million for the 52 weeks period that ended on Jan. 30, 2010 turned into a Net Income of $62.88 million for the 53 weeks period that ended on Feb. 2, 2013. Additionally, shares of Saks Inc (NYSE:SKS) grew from $1.55 per share in March 2009 to as high as $15.89 per share on July 19, 2013.
In addition, the plaintiff claims that the process is also unfair to NYSE:SKS investors. The plaintiff alleges that defendants agreed to deal protection devices such as a limited go-shop followed by a strict-no solicitation provision, a matching rights provision, and a $73.50 million termination fee provision, that serve to prevent other bidders from making a successful competing offer for the company.
On August 6, 2013, NYSE:SKS shares closed at $16.135 per share.
Those who are current investors in Saks Inc (NYSE:SKS), 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