Shareholder rights firm
Robbins Umeda LLP
has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Golfsmith International Holdings, Inc. (NASDAQ: GOLF) in connection with their efforts to sell the company to Golf Town. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003,
, or via the
shareholder information form
on the firm's website.
On May 14, 2012, Golfsmith announced that it had entered into a definitive merger agreement to be acquired by Golf Town. According to the terms of the deal, Golf Town will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, Golfsmith shareholders will receive $6.10 in cash for each share of the company they own. The transaction is expected to close during the third quarter of 2012.
Robbins Umeda LLP's investigation focuses on whether Golfsmith's board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive financial results. On March 1, 2012, Golfsmith reported strong operating results for the fourth quarter of fiscal year 2011. The company reported $74.5 million in revenue during the fourth quarter of 2011, a 2.3% increase over the $72.9 million in revenue reported during the same quarter of the previous fiscal year. Furthermore, at least one leading market analyst has released a target price for Golfsmith that values the company stock at $7.50 per share, considerably higher than the value currently being offered by Golf Town as part of the proposed transaction. Given the company's impressive financial results and recent target prices, Robbins Umeda LLP is examining the board's decision to sell Golfsmith now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.