Jun 22, 2015, 07:50 ET
NEW YORK, June 22, 2015 /PRNewswire/ -- Harwood Feffer LLP (www.hfesq.com) announces that it is investigating potential legal claims against the board of directors of Martha Stewart Living Omnimedia, Inc. ("Martha Stewart: or the "Company") (NYSE: MSO) regarding possible breaches of fiduciary duties and other violations of law related to the Company's entry into an agreement to be acquired by Sequential Brands Group, Inc. ("Sequential Brands") (NASDAQ CM: SQBG), in a transaction valued at approximately $353 million.
Under the terms of the agreement, shareholders of Martha Stewart will be entitled to elect to receive either (a) $6.15 in cash or (b) a number of shares of a newly formed public holding company ("TopCo") common stock equal to $6.15 divided by the volume weighted average price of Sequential Brands common stock during the five-day period ending on the trading day immediately prior to closing, for each share of Martha Stewart common stock held.
The investigation concerns whether Martha Stewart's board of directors failed adequately to shop the Company and obtain the best possible value for Martha Stewart's shareholders before entering into an agreement with Sequential Brands. Upon announcement of the acquisition agreement, Martha Stewart shares fell approximately 14% from their September 19 closing price of $6.98 to $6.02 per share.
Martha Stewart's stock closed at $5.10 on June 17, an 18% gain in 2015, fueled in part by speculation of an impending sale. When reports surfaced on June 18 that Sequential Brands was near to announcing an acquisition for the Company, shares in Martha Steward surged, with investors speculating that a buyout could drive the stock up to $8 or even $9 per share. But such valuations may prove to be terribly inflated.
Our investigation concerns whether the Company's board of directors is fulfilling its fiduciary duties, maximizing the value of the Company, disclosing all material benefits and costs, and obtaining full and fair consideration for Company stockholders.
If you own Martha Stewart shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Benjamin I Sachs-Michaels, Esq.
Robert I. Harwood, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
Email: [email protected]
Follow us on Twitter: @HarwoodFeffer
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
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