NEW YORK, May 9, 2017 /PRNewswire/ -- WeissLaw LLP is
investigating possible breaches of fiduciary duty and other
violations of law by the Board of Directors of Kate Spade and Company (NYSE: KATE or the
"Company") in connection with the proposed acquisition of the
Company by Coach, Inc. (NYSE: COH or "Coach"). Under the
terms of the agreement, the Company's shareholders will receive
$18.50 in cash for each KATE share
they own.
WeissLaw is investigating whether KATE's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, the per-share consideration offers virtually no premium
over KATE's May 5 closing price of
$16.97, is well below the Company's
recent trading high of $24.24, and is
nearly $8.00 lower than the analyst
target price of $26.00 per
share. Additionally, the deal is a strategic transaction
which Coach believes will diversify its portfolio, expand its
customer base, and strengthen its millennial customer segment,
which Coach hopes to successfully capitalize on KATE's brand
loyalty with millennials to improve its market positions in three
key opportunity spaces:
- The Handbag and Accessories space, which offers Coach a
$42 billion opportunity;
- The Footwear space at $28
billion; and
- The Outerwear space at $11
billion.
Finally, upon closing, Coach anticipates the acquisition to
yield double-digit accretion by fiscal year 2019, and $50 million in synergies within three years of
deal closing.
Given these facts, WeissLaw is investigating whether KATE's
Board acted in the best interests of KATE's public shareholders to
maximize shareholder value prior to entering into the
agreement. If you own KATE shares and would like more
information about your rights or our investigation, or if you have
information to share with us, please contact Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the form
on our website,
http://www.weisslawllp.com/kate-spade-and-company/
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SOURCE WeissLaw LLP