mail@shareholdersfoundation.com
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Aug 25, 2009 -
An investigation on behalf of current investors Charlotte Russe Holding (Public, NASDAQ:CHIC)
, who purchased the shares before August 24, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.
If you are currently an investor in shares of Charlotte Russe Holding (Public, NASDAQ:CHIC)
, and purchased the shares before August 24, 2009, you have certain options and you should contact the Shareholders Foundation, Inc. at:
Email: mail@shareholdersfoundation.com
Or call us at: +1 (858) 779 - 1554
The investigations by law firms focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Charlotte Russe Holding (Public, NASDAQ:CHIC)
arising out of their attempt to sell Charlotte Russe to Advent International Corp. Charlotte Russe Holding, Inc. (NASDAQ: CHIC) announced on August 24, 2009, that it has entered into a definitive agreement to be acquired and taken private by investment funds managed by Advent International Corporation. According to Charlotte Russe under the terms of the merger agreement, an affiliate of Advent International Corp will commence a tender offer to purchase for cash all of the outstanding shares of Charlotte Russe common stock (NASDAQ: CHIC), and the associated preferred stock purchase rights, at a price of $17.50 per share, for a total value of approximately $380 million. But according to an investigation by a law firm “the transaction appears to be unfair” to current investors of Charlotte Russe Holding (Public, NASDAQ:CHIC)
. According to another investigation the investigation “concerns whether the Charlotte Russe Board of Directors breached their fiduciary duties to Charlotte Russe shareholders given that the Company has posted better-than-
expected earnings in the past couple of quarters and that the purchase price is only 4.5 times EBITDA, which one analyst called "a pretty good discount" for an acquisition of a specialty retailer”. Charlotte Russe Holdings, Inc., located in San Diego, California, incorporated in July 1996, is a mall-based specialty retailer of fashionable, value-priced apparel and accessories. Charlotte Russe Holdings distributes and sells apparel and accessories to young women in their teens and twenties. Charlotte Russe Holdings reported in 2007 (ending on September 2007) Total Revenue of $740.94million with a Net Income of $36.30million and in 2008 (ending on September 2008) Total Revenue of $823/25million with a Net Income of $18.17million. Charlotte Russe Holdings shares (NASDAQ: CHIC) traded at $1736 per share after the announcement and the day before the announcement at $ 13.80 per share, down from almost $20 per share in 2008 and over $30 per share in 2007.
Those who are currently investors in shares of Charlotte Russe Holding (Public, NASDAQ:CHIC)
, and purchased the shares before August 24, 2009, and / or have additional information relating to the investigation, should contact the Shareholders Foundation, Inc. at:
Email: mail@shareholdersfoundation.com
Or call us at: +1 (858) 779 - 1554
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-
779-1554
Fax:+1-(858)-
605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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http://www.prlog.org/10321200/1Advertising. The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
