SAN DIEGO and CITY OF
INDUSTRY, Calif., March 8, 2013 /PRNewswire/ -- Shareholder rights
attorneys at Robbins Arroyo LLP are investigating the acquisition
of Hot Topic, Inc. (NASDAQ: HOTT) by Sycamore Partners, Inc.
On March 7, 2013, the two
companies jointly announced the signing of a definitive merger
agreement whereby Sycamore Partners will acquire Hot Topic for
$14.00 per share.
(Logo:
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)
Hot Topic Shareholders Might Not Receive Maximum Value for
Their Stock
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Hot Topic is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders in the
merger or whether they are seeking to benefit themselves. The
merger consideration is substantially below the $16.40 target price set by an analyst at B. Riley
& Company on January 22,
2013.
On February 6, 2013, Hot Topic
released its fourth quarter and full year 2012 earnings results,
reflecting strong increases in net sales over the same periods in
2011. Specifically, Hot Topic reported a net increase in
sales for the fourth quarter of 11%, to $233
million, while net sales for the full year increased to
$741.8 million. Further, the
company maintained its previously announced fiscal 2013 earnings
estimate of growth of 30% to 35%, as compared to fiscal 2012.
Commenting on these results, Lisa
Harper, Chairman and CEO of Hot Topic stated, "we expect
many of the company's new merchandising, system and process
initiatives will continue to gain traction in 2013, supporting
continued comp growth and additional margin expansion in all
brands."
Given these facts, the firm is examining the board of directors'
decision to sell Hot Topic now rather than allow shareholders to
continue to participate in the company's continued success and
future growth prospects.
Hot Topic shareholders have the option to file a class action
lawsuit to secure the best possible price for shareholders and the
disclosure of material information so shareholders can vote on the
transaction in an informed manner. Hot Topic shareholders
interested in information about their rights and potential remedies
can contact 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 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. For more information, please go to
http://www.robbinsarroyo.com.
Press release link:
http://www.robbinsarroyo.com/shareholders-rights-blog/hot-topic-inc/
Attorney Advertising. Past results do not guarantee a similar
outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP