Acquisition of Zale Corporation by Signet Jewelers Limited May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is 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, or you can complete the form below and we will contact you directly.