SAN DIEGO and NEW YORK, May 18,
2015 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the proposed acquisition of
ANN INC. (NYSE: ANN) by Ascena Retail Group Inc. (NASDAQ:
ASNA). On May 18, 2015, the two
companies announced the signing of a definitive merger agreement
pursuant to which Ascena will acquire ANN. Under the terms of
the agreement, ANN shareholders will receive 0.68 shares of Ascena
stock and $37.34 in cash, for a
combined value of $47.00 for each
share of ANN common stock.
View this information on the law firm's Shareholder Rights Blog:
http://www.robbinsarroyo.com/shareholders-rights-blog/ann-inc
Is the Proposed Acquisition Best for ANN and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at ANN is undertaking a fair process to obtain maximum
value and adequately compensate its shareholders.
As an initial matter, the $47.00
merger consideration represents a premium of only 22.0% based on
ANN's closing price on April 20,
2015. This premium is significantly below the average one
month premium of nearly 30.1% for comparable transactions within
the past five years. Further, the $47.00 merger consideration is below the target
price of $48.00 set by an analyst at
Mizuho Securities USA Inc. on
March 13, 2015.
On March 13, 2015, ANN reported
strong earnings results for its fourth quarter 2014. Net
sales were $647.4 million, a 3.9%
increase over the fourth quarter 2013. Total ANN comparable
sales for the quarter increased 1.0% on top of an increase of 2.9%
in the fourth quarter of 2013. ANN beat consensus analyst
estimates for adjusted EPS in three out of the last four
quarters. In commenting on these results, ANN President and
Chief Executive Officer Kay Krill
remarked, "Despite a highly promotional and competitive
environment, ANN INC. achieved positive comparable sales and
effectively managed expenses in the fourth quarter, generating
bottom-line results that came in slightly ahead of the outlook we
provided in November. In addition, we delivered on our commitment
to clear excess inventory, entering fiscal year 2015 in a healthy
position in all channels."
In light of these facts, Robbins Arroyo LLP is examining ANN's
board of directors' decision to sell the company now rather than
allow shareholders to continue to participate in the company's
continued success and future growth prospects.
ANN shareholders have the option to file a class action lawsuit
to ensure the board of directors obtains the best possible price
for shareholders and the disclosure of material information.
ANN shareholders interested in information about their rights and
potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP