Now, it seems that a Volcom shareholder, Gabriel Graff, is suing the company in Delaware in an attempt to block the deal with PPR.
PPR is purchasing Volcom at $24.50 per share, which Graff believes is “grossly inadequate.”
“Despite the company’s recent financial success, Volcom is trying to sell itself off to PPR,” said Graff.
He went on to say, “These preclusive deal protection devices illegally restrain the company’s ability to solicit or engage in negotiations with any third party.”
But, Volcom Inc. was valued at $19.73 on April 29 when the deal was announced, thus the $24.50 amount is actually 24% higher than the actual stock price, which seems to discredit Mr. Graff’s statements.
Volcom joins Puma, PPR’s other major athletic brand, along with high-end entities such as Yves St. Laurent and Gucci, also owned by the conglomerate.
PPR is banking on the Volcom brand flourishing in a more global market, and is looking forward to adding Volcom’s specialties such as board shorts, hoodies and lifestyle clothing to Puma’s focus on soccer and running shoes.
Insiders believe the deal to be finalized in September 2011, but the Graff lawsuit might delay the proceedings.
Officially, the case is Graff v. Volcom, INC. CA6487, Delaware Chancery Court (Wilmington).