The Shareholders Foundation announces that an investor who currently holds shares of Zale Corporation (NYSE:ZLC) filed a lawsuit in effort to halt the proposed takeover of Zale Corporation by Signet Jewelers Limited for $21.00 per share.
Investors who purchased shares of Zale Corporation (NYSE:ZLC) and currently hold any of those NYSE:ZLC shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:ZLC stockholders arising out of the attempt to sell Zale Corporation too cheaply via an unfair process to Signet Jewelers Limited.
On February 19, 2014 Signet Jewelers Limited (NYSE and LSE: SIG) and Zale Corporation (NYSE:ZLC) announced that they have entered into an agreement for Signet Jewelers Limited to acquire all of the issued and outstanding stock of Zale for $21.00 per share in cash consideration.
However, the plaintiff alleges that the $21 -offer is too low and undervalues Zale Corporation. Indeed, Zale Corporation’s performance improved recently. For instance, reported that its Total Revenue rose from over $1.74 billion for the 12 months period that ended on July 31, 2011 to over $1.88 billion for the 12 months period that ended on July 31, 2013 and its Net loss of $112.04 million for the 12 months period that ended on July 31, 2011 turned into a Net Income of $10.01 million for the 12 months period that ended on July 31, 2013. Shares of Zale Corporation (NYSE:ZLC) grew from $1.14 per share in March 2009 to as high as $16.51 per share in January 2013.
In addition the plaintiff alleges that the process is unfair to NYSE:ZLC investors. In fact, Signet Jewelers Limited has already entered into a voting and support agreement with Golden Gate Capital, the beneficial owner of approximately 22% of Zale’s common stock.
On February 28, 2014 NYSE:ALC shares closed at $21.73 per share.
Those who are current investors in Zale Corporation shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego