NEW YORK, June 25, 2009 (GLOBE NEWSWIRE) -- Levi & Korsinsky ("L&K") is investigating the Board of Directors of Tween Brands Inc. ("Tween Brands" or the "Company") (NYSE:TWB) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Dress Barn Inc. ("Dress Barn") (Nasdaq:DBRN). Under the terms of the agreement, shareholders of Tween Brands will receive 0.47 shares of Dress Barn stock for each share of Tween Brands they own. Based on Dress Barn's June 24, 2009 closing stock price of $13.24, the agreement values Tween Brands shares at $6.22 per share.
The price appears unfair given that Tween Brands shares traded above $9.00 per share as recently as the fourth quarter of 2009, the Company has a book value of over $7.00 per share and at least one analyst has set an $8.00 price target for Tween Brands shares. Also, the sales process the Company conducted was flawed because the Company agreed to a non-solicitation provision and a termination fee of $5.15 million that will all but ensure that no superior offer will ever be forthcoming.
Tween Brands is a specialty retailer for tween girls in the United States and internationally. The Company had revenues of approximately $995 million for fiscal year 2008 and has approximately $84 million, or $3.40 per share, in cash.
If you own common stock in Tween Brands and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/twb1.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.