Kenneth Cole has made an offer to take the company he founded private, although slightly over the market price at the time, $15 a share is not likely to buy Kenneth Cole Productions, Inc. (NYSE: KCP).
Kenneth Cole Productions, Inc. (NYSE: KCP) (the “Company”) announced that its board of directors has received a non-binding proposal from Kenneth Cole, Chairman and Chief Creative Officer of the Company and the holder of approximately 47% of the Company’s outstanding common stock (representing approximately 89% of the voting power), to acquire all of the outstanding shares of the Company’s Class A common stock that he does not currently directly or indirectly own for $15.00 per share in cash. A copy of the text of the proposal letter to the board of directors is set forth below.
In response, the board of directors has formed a special committee of independent directors to consider the proposal, to negotiate on behalf of the Company and, if it deems appropriate, to solicit and consider any alternative transactions. The special committee is comprised of all of the directors of the Company other than Kenneth Cole and Paul Blum. The special committee is authorized to retain independent financial advisors and legal counsel to assist it in its work. The board of directors cautions the Company’s shareholders and others considering trading in its securities that it has only received the proposal and that no decision has been made with respect to the Company’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that the transaction contemplated in the proposal or any other transaction will be approved or consummated. The Company does not anticipate making any further public statements about this matter or the activities of the special committee unless and until either it enters into a definitive agreement for a transaction or the special committee determines that no such transaction will be effected.
No comments:
Post a Comment