An investigation on behalf of investors of G&K Services Inc (NASDAQ:GK) in connection with the proposed takeover was announced and NASDAQ:GK stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/24/2016 -- An investigation on behalf of investors, who currently hold shares of G&K Services Inc (NASDAQ:GK), was announced concerning whether the takeover of G&K Services Inc. by Cintas Corporation for $97.50 per share is unfair to NASDAQ:GK stockholders.
Investors who purchased shares of G&K Services Inc (NASDAQ:GK) and currently hold any of those NASDAQ:GK shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The investigation by a law firm concerns whether certain directors of G&K Services Inc breached their fiduciary duties owed to NASDAQ:GK investors in connection with the proposed acquisition.
On August 16, 2016, G&K Services, Inc. announced that its Board of Directors has approved an agreement pursuant to which Cintas Corporation will acquire G&K Services in a transaction valued at approximately $2.2 billion, including G&K's outstanding indebtedness. G&K Services Inc (NASDAQ:GK) shareholders will receive $97.50 per share in cash for each outstanding share of common stock held.
However, given that at least one analyst has set the high target price for NASDAQ:GK shares at $98.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:GK stockholders. More specifically, the investigation concerns whether the G&K Services 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.
G&K Services Inc reported that its Total Revenue rose from $828.95 million for the 12 months period that ended on June 30, 2012 to $937.64 million for the 12 months period that ended on June 27, 2015 and that its Net Income for those respective time periods increased from $24.15 million to $59.87 million.
Shares of G&K Services Inc (NASDAQ:GK) closed on August 23, 2016, at $96.89 per share.
Those who are current investors in G&K Services Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com