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Kenneth Cole Proposes Transaction To Acquire 100% Of Public Interest In Kenneth Cole Productions, Inc.

Stocks in this article: KCP

NEW YORK, Feb. 24, 2012 /PRNewswire/ -- Kenneth D. Cole today 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 "Company").  Mr. Cole is Chairman and Chief Creative Officer of the Company and currently owns approximately 47% of the common stock (representing approximately 89% of the voting power) of the Company.

(Logo: http://photos.prnewswire.com/prnh/20111101/MM98089LOGO )

Under the proposed transaction, transmitted following the close of the market yesterday in a letter to the Company's Board of Directors, public stockholders would receive $15.00 per share in cash.  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.  The letter also stated that the proposal represents a unique opportunity for the Company's stockholders to monetize their investment at a premium to the Company's current and recent stock price, and that the proposed price represents a higher price than the stock has traded for since October 2010, and, prior to then, September 2008.

In the offer letter, Mr. Cole said:  "Recent market challenges have created a sharply competitive landscape, and I believe it is now more important than ever to embrace a more entrepreneurial  perspective where  we are all incentivized to grow and develop our Company's products, brand and business with a longer term perspective.  I believe it is increasingly difficult to develop this type of culture in  a public company context, where the public markets are increasingly focused on short-term results.  I am convinced that private ownership is in the best interests of the business and the organization and that this proposal is in the best interests of the shareholders."

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