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.
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
per share in cash. The proposal values the total equity of the Company at approximately
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
, and, prior to then,
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."