Collective Brands Inc. (NYSE:PSS) Investor Investigation Over Potential Breaches Of Fiduciary Duties In Connection With Takeover Bid

If you purchased shares of Collective Brands Inc. (NYSE:PSS) prior to May 1, 2012 and currently hold any of those NYSE:PSS shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to, or call us at (858) 779-1554.
Company Name(s): 
Collective Brands
Affected Securities: 

May 01, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in NYSE:PSS shares concerning whether the offer by consortium comprised of Wolverine Worldwide (NYSE: WWW), Blum Capital Partners and Golden Gate Capital to acquire Collective Brands Inc. (NYSE:PSS at $21.75 per share and the takeover process are unfair to investors in NYSE:PSS. was announced.

The investigations by law firms concern whether certain officers and directors of Collective Brands Inc. breached their fiduciary duties owed to NYSE:PSS investors in connection with the proposed acquisition.

On Tuesday May. 1, 2012-- Collective Brands, Inc. (NYSE: PSS) and a consortium comprised of Wolverine Worldwide (NYSE: WWW), Blum Capital Partners and Golden Gate Capital announced that they have entered into a agreement under which Collective Brands will be acquired for $21.75 per share in cash, or a total of approximately $2.0 billion, including the assumption of debt.
Collective Brands, Inc said the $21.75offer represents a 104% premium to the 30-day volume weighted average trading price prior to the August 24, 2011 announcement that Collective Brands’ Board of Directors, together with management, would conduct a review of strategic and financial alternatives.

Following the takeover news shares of Collective Brands Inc. (NYSE:PSS) rose from $20.77 per share on Monday to $21.25 per share on Tuesday.

However, NYSE:PSS traded during Friday April 27, 2012 as high as $21.23 per share, leaving seom NYSE:PSS stockholders with only a meager premium. In fact, NYSE:PSS shares traded in February 2011 as high as $23.44 per share and in 2010 as high as $25.99 per share, thus asking certain stockholders to hand over their NYSE:PSS shares at a discount.

In addition, Collective Brands’ financial performance improved over the past recent years. Its Total Revenue rose from $3.3billion for a 52weeks period ending on Jan. 30, 2010 to $3.46billion for the 52weeks period ending on Jan. 28, 2012.

Therefore the investigation for NYSE:PSS investors concerns whether the proposed transaction is unfair to Collective Brands Inc. stockholders. Specifically, the investigation focuses on whether the Collective Brands Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.