SAN DIEGO and PICKERINGTON, Ohio, May
5, 2014 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the proposed acquisition of
R.G. Barry Corporation (NASDAQ: DFZ) by the private equity firm
Mill Road Capital. On May 2,
2014, the two companies announced the signing of a
definitive merger agreement pursuant to which R.G. Barry
shareholders will receive $19.00 in
cash for each share of common stock.
Is the Proposed Acquisition Best for R.G. Barry and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at R.G. Barry is undertaking a fair process to obtain
maximum value and adequately compensate R.G. Barry
shareholders.
As an initial matter, the $19.00
merger consideration represents a premium of just 5% based on R.G.
Barry's closing price of $18.10 on
May 1, 2014. This premium is
significantly below the average one day premium of over 38% for
comparable transactions in the last three years. Further, the
merger consideration is below the target price of $21.50 recently set by an analyst as reported by
Yahoo Finance. In addition, R.G. Barry has traded above the merger
consideration as recently as April 24,
2014, when it reached a high of $19.15, and the stock closed as high as
$19.79 on December 20, 2013.
Notably, Mill Road Capital controls nearly 10% of R.G. Barry's
outstanding shares, raising the concern that Mill Road Capital is
receiving preferential treatment in its acquisition of R.G.
Barry. In connection with the execution of the Merger
Agreement, Mill Road Capital agreed to vote its shares in favor of
the agreement.
Given these facts, Robbins Arroyo LLP is examining the R.G.
Barry board of directors' decision to sell the company to Mill Road
Capital. R.G. Barry 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. R.G. Barry shareholders interested in
information about their rights and potential remedies can contact
attorney 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 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. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP