NEW YORK, May 10, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Krispy Kreme Doughnuts, Inc. ("KKD" or the "Company") in connection with the proposed acquisition of the Company by private equity firm JAB Holding Company ("JAB").  On May 9, 2016, the Company announced it had reached a definitive agreement for JAB to acquire all outstanding shares of KKD in a transaction valued at approximately $1.35 billion.  Under the terms of the agreement, KKD shareholders will receive $21.00 in cash for each KKD share they own. 

WeissLaw is investigating whether KKD's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, at least one analyst set a target price of $24.00 per share, or $3.00 above the offer price.  Additionally, the Company recently announced positive financial results in fiscal year 2016.  It reported a 7.8% increase in net income to $32.4 million, and a 5.8% increase in revenue to $518.7 million.  KKD also announced that it expanded its store count 14% to over 1,100 stores.  Finally, in March the Company reported its "seventh consecutive year of positive same store sales at Company stores."

Given these facts, WeissLaw is investigating whether KKD's Board acted in the best interests of KKD's public shareholders to maximize shareholder value prior to entering into the agreement.  If you own KKD shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/krispy-kreme-doughnuts-inc-acquisition-may-not-be-in-the-best-interests-of-kkd-shareholders-300266335.html

SOURCE WeissLaw LLP

Copyright 2016 PR Newswire

Krispy Kreme Doughnuts (NYSE:KKD)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Krispy Kreme Doughnuts Charts.
Krispy Kreme Doughnuts (NYSE:KKD)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Krispy Kreme Doughnuts Charts.