Acquisition of Maidenform Brands, Inc. by HanesBrand, Inc. May Not Be in the Best Interests of Maidenform Shareholders

SAN DIEGO and ISELIN, N.J., July 24, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Maidenform Brands, Inc. (NYSE: MFB) ("Maidenform") by HanesBrand, Inc. (NYSE: HBI) ("HanesBrand").  On July 24, 2013, the two companies announced a definitive agreement under which HanesBrand will acquire Maidenform.  Under the terms of the agreement, HanesBrand will acquire all outstanding shares of Maidenform for $23.50 per share in cash.  The transaction is expected to close in the fourth quarter of 2013.  

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Is the Merger Best for Maidenform Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Maidenform is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger, or whether they are seeking to benefit themselves.

On April 30, 2013, Maidenform released its financial results for the first quarter of 2013, reporting total cash and cash equivalents as of March 30, 2013, up to $47 million compared to $29.8 million as of March 31, 2012.  Moreover, Maidenform exceeded analyst net income and sales expectations in seven of the past nine quarters.

Further, on July 23, 2013, in connection with the merger agreement, the Compensation Committee of the board of directors at Maidenform: (i) amended the employment agreements of certain executive officers to increase severance packages up to 200% of their base salaries and bonus amount; (ii) amended the Maidenform Executive Severance Pay Plan for other officers to include changes in the way payment of severance benefits are paid and the length of time benefits are in effect; (iii) increased the severance entitlement of certain officers; and (iv) adopted additional transaction bonus agreements for certain officers providing for transaction incentive payments up to 200% of base salaries if they remain employed through the effective time of the merger, or if they are involuntarily terminated without cause prior to the completion of the merger.

Given these facts, Robbins Arroyo is examining Maidenform's board of directors' decision to be acquired by HanesBrand now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

Maidenform shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information to shareholders.  Maidenform shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.  For more information, please go to http://www.robbinsarroyo.com.

Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/maidenform-inc/

Attorney Advertising. Past results do not guarantee a similar outcome.  

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

SOURCE Robbins Arroyo LLP