March 2, 2012 (Update) -- Another investor in NYSE:KCP shares filed an additional lawsuit in effort to stop the proposed acquisition of Kenneth Cole Productions.
San Diego, Feb. 27, 2012 (Shareholders Foundation) -- An investor in NYSE:KCP shares filed a lawsuit in State Court in effort to block the proposed takeover of Kenneth Cole Productions for $15 per share.

On Feb. 24, 2012, Kenneth D. Cole, Chairman and Chief Creative Officer of Kenneth Cole Productions, Inc, announced that he has proposed to acquire through a merger transaction 100 percent of the outstanding publicly held shares of common stock of Kenneth Cole Productions, Inc. (NYSE: KCP). The proposal values the total equity of the Company at approximately $280 million. The offer letter stated that the proposed price represents a premium of approximately 26% over the average closing price of the Company's Class A common stock for the past 45 trading days

However, the plaintiff alleges that the $15offer is unfair to the NYSE:KCP stockholders and undervalues Kenneth Cole Productions. In fact, following the takeover proposal shares of Kenneth Cole Productions (NYSE:KCP) jumped from $13.07 per share on Thursday to $15.90 on Friday, February 24, 2012 and at least one analyst has set the high target price for NYSE:KCP shares at $17 per share, both above the $15 offer.

Additionally, Kenneth Cole Productions’ performance over the past recent years increased. Its annual Revenue rose from $410.40million in 2009 to $457.33million in 2010 and its Net Loss of $63.24million in ’09 turned into a Net Income of $2.08million in 2010. Its third quarter revenue rose from $119.04million in 2010 to $128.01million in 2011 and its third quarter Net Income increased from $2.02million in 2010 to $5.76million in 2011.

Furthermore, the plaintiff alleges the process is unfair to NYSE:KCP stockholders. Indeed, Mr. Cole currently owns approximately 47% of the common stock (representing approximately 89% of the voting power) of the Company.