Directors of Maidenform Brands Inc., the intimate-apparel company being bought by underwear maker HanesBrands Inc. for $575 million, were sued by an investor seeking more money in the deal.
Maidenform, based in Iselin, New Jersey, said July 24 it would be bought by HanesBrands, based in Winston-Salem, North Carolina, for $23.50 a share, a 23 percent premium at the time.
“The merger consideration agreed to by the board is grossly unfair” and “does not reflect the intrinsic value of the company as a takeover candidate,” investment custodian Bonnie Federman contended in a Delaware Chancery Court complaint made public today.
Maidenform directors have a duty to get the best possible price for the stock, and a judge should stop the buyout under its present terms, Federman said in court papers.
“Maidenform does not comment on pending litigation,” Jonathan Doorley, a spokesman for the company with Sard Verbinnen & Co., said in an e-mailed statement.
The case is Federman v. Maidenform, CA8750, Delaware Chancery Court (Wilmington).