Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor, LLP are investigating the sale of Charming Shoppes, Inc. (“Charming Shoppes” or “CHRS”) (NASDAQ: CHRS) to Ascena Retail Group, Inc. for shareholders. Under the proposed transaction, Charming Shoppes shareholders will receive only $7.35 in cash for each share of Charming Shoppes stock owned.
If you are an affected investor, and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
The definitive merger agreement involves an all cash transaction with a total equity value of approximately $890 million that is expected to close in the second quarter of 2012.
The investigation centers on whether Charming Shoppes shareholders are receiving adequate compensation for their shares in the buyout, whether the transaction undervalues Charming Shoppes stock, and whether Charming Shoppes’ board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal. Although the acquisition price represents a premium of approximately 25% over the closing price of Charming Shoppes shares the day prior to the buyout announcement, at least one analyst with Yahoo! Finance has estimated that the true inherent value of the stock is as high as $9.00 per share, well above the proposed price. According to shareholder rights attorney Willie Briscoe, “Because of the lack of a significant premium to the shareholders, and other factors, we believe that the transaction may undervalue Charming Shoppes stock. Our lawsuit will seek to obtain the highest share price for all shareholders.”
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