LOS ANGELES — At least nine shareholder-rights law firms said this week they have begun investigations into the proposed sale of Arden Group, saying the $394 million price tag may be too low.
"The transaction may undervalue the company and will result in a loss or no gain for many Arden shareholders,” said a statement from Brodsky & Smith, a law firm based in Bala Cynwyd, Pa.
That firm and others issued a slew of statements saying that Arden’s board may not have acted in Arden shareholders’ best interests in accepting the $126.50-per-share offer from TPG, a Fort Worth, Texas-based private-equity firm.
Read more: Arden Agrees to Sale for $394M
Arden stock traded above the sale price at $131.90 per share as recently as Oct. 21, Brodsky & Smith noted, and traded at $135.82 per share on Sept. 10.
As previously reported, Arden, parent of the 17-unit Gelson’s Markets banner, said on Dec. 20 it had reached an agreement to be acquired by TPG. It had announced earlier this year that it was putting itself up for sale.
A spokesman for Arden was not immediately available for comment.
Read more: Gelson's Eyes Expansion in Calif.
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