Press release from PR Newswire
Acquisition of Zale Corporation by Signet Jewelers Limited May Not Be in Shareholders' Best Interests
Thursday, February 20, 2014
Acquisition of Zale Corporation by Signet Jewelers Limited May Not Be in Shareholders' Best Interests19:22 EST Thursday, February 20, 2014
SAN DIEGO and IRVING, Texas, Feb. 20, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Zale Corporation (NYSE: ZLC) by Signet Jewelers Limited (NYSE: SIG). On February 19, 2014, the companies announced the signing of a definitive agreement pursuant to which Signet will acquire all outstanding shares of Zale stock for $21.00 per share in cash.
Is the Proposed Merger Best for Zale and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Zale is undertaking a fair process to obtain maximum value and adequately compensate Zale shareholders. In particular, Zale is at the end of a successful multi-year turnaround effort to return to profitability. As a result of that effort, the company has delivered positive comparable store sales for twelve consecutive quarters. In addition, Zale's branded stores posted a comparable store sales increase of 7.5% for the quarter following a 4.8% rise in the same period last year. Similarly, the company's Peoples branded stores posted a comparable store sales increase of 3.1% following an 8.9% rise in the same period last year.
Given these facts, Robbins Arroyo LLP is examining the Zale board of directors' decision to sell the company to Signet now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Zale 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. Zale shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, 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. DonahueRobbins Arroyo LLPddonahue@robbinsarroyo.com(619) 525-3990 or Toll Free (800) 350-6003www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP