99 Cents Only Shareholders Call $1.6B Deal Too Cheap

Law360, New York (October 13, 2011, 1:23 PM EDT) -- Shareholders of 99 Cents Only Stores on Wednesday filed a putative class action alleging that a proposed $1.6 billion buyout of the discount retailer by Ares Management LLC and the Canada Pension Plan Investment Board significantly undervalues the company.

In a complaint filed in California court, the shareholders allege that the $22 per share offer from the private equity consortium is designed to benefit 99 Cents Only Stores' controlling shareholders at the expense of the public shareholders and should be blocked.

The company's CEO Eric Schiffer,...
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