Acquisition of Caribou Coffee Company, Inc. by Joh. A. Benckiser
Group May Not Be in Caribou's Shareholders' Best Interests
SAN DIEGO and MINNEAPOLIS, Dec. 18,
2012 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Umeda LLP are investigating possible breaches of fiduciary
duty and other violations of the law by members of the board of
directors of Caribou Coffee Company, Inc. (NASDAQ: CBOU) in
connection with their efforts to sell the company to an affiliate
of Joh. A. Benckiser Group. Caribou Coffee is the second-largest
company-owned coffeehouse operator in the
United States.
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On December 17, 2012, Caribou
Coffee and the Benckiser Group announced they had entered into a
definitive merger agreement under which the Benckiser Group will
acquire Caribou Coffee through an all cash tender offer that valued
the company at $324.8 million.
Caribou Coffee shareholders will receive $16 per share. The transaction is expected
to close in the first half of 2013.
The Board of Directors' Actions May Prevent Caribou Coffee
Shareholders from Receiving the Maximum Value for Their
Stock
Robbins Umeda LLP's investigation focuses on whether the board
of directors at Caribou Coffee is undertaking a fair process to
obtain maximum value and adequately compensate its shareholders.
The $16 per share offer is
substantially below the $18.84 per
share price the Company's stock traded as recently as April 2, 2012, and is well below recent target
prices set by multiple analysts. Specifically, an analyst at
Craig-Hallum has maintained a target price of $19 per share since August
7, 2012, while an analyst at Longbow Research set a
$17 per share price on December 12, 2012. Further, on November 8, 2012, Caribou Coffee announced its
third quarter 2012 financial results, reporting earnings per share
estimates that exceeded analysts' for the eighth consecutive
quarter. The company also reported coffeehouse sales of
$61.0 million, a 4% increase compared
to the third quarter of 2011 and that franchise sales for the third
quarter 2012 increased to $4.3
million, or 45%, compared to the third quarter of 2011.
Given these facts, the firm is examining whether the board of
directors' decision to sell Caribou Coffee for $16 per share is fair to shareholders and it
maximizes the value for their shares.
Caribou Coffee shareholders have the option to file a class
action lawsuit against the company to secure the best possible
price for shareholders and to ensure disclosure of material
information so shareholders can make an informed decision on
whether to tender their shares in the tender offer. Caribou Coffee
shareholders interested in information about their rights and
potential remedies can contact Darnell R.
Donahue at (800) 350-6003, ddonahue@robbinsumeda.com, or via
the shareholder information form on the firm's website.
Robbins Umeda 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.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/caribou-coffee-company-inc/
Attorney Advertising.Past results do not guarantee a similar
outcome.
Contact:
Robbins Umeda LLP
Darnell R. Donahue
ddonahue@robbinsumeda.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsumeda.com
SOURCE Robbins Umeda LLP