Warnaco Group Shareholders Challenge $2.9B Buyout Bid

Law360, New York (November 14, 2012, 7:23 PM EST) -- A shareholder of fashion house The Warnaco Group Inc. filed a putative securities class action against the company and its board of directors in New York state court Wednesday, claiming its proposed $2.9 billion buyout by competitor PVH Corp. undervalued the company.

Shareholder Timothy E. Coyne said that the buyout does not take into account strong 2011 sales by Warnaco and is geared to benefit Warnaco's senior management, led by president and CEO Helen McCluskey.

Under the terms of the merger, announced on Oct. 31, Warnaco shareholders...
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