Acquisition of Maidenform Brands, Inc. by HanesBrand, Inc. May Not Be in the
Best Interests of Maidenform Shareholders
SAN DIEGO and ISELIN, N.J., July 24, 2013
SAN DIEGOand ISELIN, N.J., July 24, 2013 /PRNewswire/ -- Shareholder rights
attorneys at Robbins Arroyo LLP are investigating the acquisition of
Maidenform Brands, Inc. (NYSE: MFB) ("Maidenform") by HanesBrand, Inc. (NYSE:
HBI) ("HanesBrand"). On July 24, 2013, the two companies announced a
definitive agreement under which HanesBrand will acquire Maidenform. Under
the terms of the agreement, HanesBrand will acquire all outstanding shares of
Maidenform for $23.50 per share in cash. The transaction is expected to close
in the fourth quarter of 2013.
Is the Merger Best for Maidenform Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors
at Maidenform is undertaking a fair process to obtain maximum value and
adequately compensate its shareholders in the merger, or whether they are
seeking to benefit themselves.
On April 30, 2013, Maidenform released its financial results for the first
quarter of 2013, reporting total cash and cash equivalents as of March 30,
2013, up to $47 million compared to $29.8 million as of March 31, 2012.
Moreover, Maidenform exceeded analyst net income and sales expectations in
seven of the past nine quarters.
Further, on July 23, 2013, in connection with the merger agreement, the
Compensation Committee of the board of directors at Maidenform: (i) amended
the employment agreements of certain executive officers to increase severance
packages up to 200% of their base salaries and bonus amount; (ii) amended the
Maidenform Executive Severance Pay Plan for other officers to include changes
in the way payment of severance benefits are paid and the length of time
benefits are in effect; (iii) increased the severance entitlement of certain
officers; and (iv) adopted additional transaction bonus agreements for certain
officers providing for transaction incentive payments up to 200% of base
salaries if they remain employed through the effective time of the merger, or
if they are involuntarily terminated without cause prior to the completion of
Given these facts, Robbins Arroyo is examining Maidenform's board of
directors' decision to be acquired by HanesBrand now rather than allow
shareholders to continue to participate in the company's continued success and
future growth prospects.
Maidenform shareholders have the option to file a class action lawsuit to
secure the best possible price for shareholders and the disclosure of material
information to shareholders. Maidenform shareholders interested in
information about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, 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 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.robbinsarroyo.com.
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
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