Finkelstein Thompson LLP is investigating potential claims on behalf of shareholders of Kenneth Cole Productions, Inc. (“Cole” or “the Company”) (NYSE: KCP), concerning a recent going-private offer by Kenneth Cole, the Company’s founder, Chairman, and largest shareholder. Under the terms of the transaction, Cole shareholders would receive $15.00 per share in a deal worth approximately $144 million, excluding shares already held by Mr. Cole.
Cole shares have performed extremely well in recent months, rising almost $3.00 between December 29 and February 23, an increase of over 27%. The deal represents only about a 15% premium to the pre-offer closing price of $13.07. At least two analysts have set target prices of $16.00 to $17.00 for the Company’s shares.
In addition to the questionable consideration offered to shareholders, the offer raises concerns about Mr. Cole’s influence on the sale process. Mr. Cole holds about 47% of the Company’s shares, and about 89% of its voting power. He stated in his offer letter that he would not support any deal to sell the company to a different acquirer, which may effectively block any competing offer from receiving serious consideration.
If you are interested in discussing your rights as a Cole shareholder, or have information relating to this investigation, please contact Finkelstein Thompson's Washington, D.C. offices at (877) 337-1050 or by email at
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