"Thanks!" to so many of you, including those who participated in the discussion from two posts this past week (here & here), as well as wellfedfred (in this post), Suzy (in this post), ThirtySelvedge, Ellen, Naomi, & Kim, who shared the following news. J.Crew's management is in the works to be taken private.
There are lots of articles discussing this news including:
- J. Crew makes deal to be taken private for $3B
- Mickey Drexler Plowing $100 Million of His J.Crew Stock into Company Buyout
- Mickey Drexler to reap 15 times his J. Crew stake
- Mickey Drexler to profit from J. Crew buyout
- Lessons from J. Crew: How to Protect Investors in Management Buyouts
- Tripp Levy PLLC Represents J. Crew Shareholders In Connection With Management Buyout
J.Crew shareholder sues over buyoutHmmm. Not sure how I feel about this news as both a customer and shareholder (who purchased stock in the high 40's).
By Bloomberg News
November 27, 2010
J.Crew Group Inc. and San Francisco's TPG Capital were sued by a J.Crew shareholder seeking to block the clothing retailer's proposed $3 billion buyout, which he said undervalues the company.
The acquisition of J.Crew by TPG and Leonard Green & Partners LP for $43.50 per share "materially undervalues" the company and is unfair to stockholders, shareholder Arnold Church said in a complaint filed Wednesday in New York State Supreme Court.
"In short, the proposed acquisition is designed to unlawfully divest J. Crew's public stockholders of the future growth potential of the company by engaging in an unfair process riddled with self-dealing," the complaint states.
J.Crew announced the buyout by TPG and Leonard Green on Tuesday. The lawsuit seeks class-action status on behalf of J.Crew shareholders, according to the complaint. Besides J.Crew and TPG, the complaint names as defendants Leonard Green and J.Crew officers and directors, including Chief Executive Officer Mickey Drexler.
I know Mickey will be making lots of money off this deal, but will the shareholders?
What are your thoughts on this latest news? Do you think this is the right move for J.Crew? What do you think this mean for shareholders?