Yesterday a significant number of Bernard Chaus, Inc. (OTC:CHBD) shares were traded after the company announced it had executed a definitive merger agreement with a Vince Camuto affiliate.
Pursuant to the agreement Camuto will purchase the shares of CHBD which are not held by Chaus family member for $0.21 per share.
The news resulted in a 42.86% price increase, a close at $0.20 and a volume of approximately 2.8 million shares.[BANNER]
The press release also revealed CHBD had executed an MOU calling for the settlement of the litigation and the resolution of objections previously raised by shareholders to the initial proposition.
Originally, Camuto had offered $0.13 per share on September 16, 2011. The MOU is not final and is still subject to court approval.
Despite the significant increase in both volume and price, CHBD transactions didn’t go through consistently throughout the session and stopped at about 1:20PM.
The merger agreement needs to get the approval of two-thirds of CHBD shareholders to take effect. The company stated it intended to file a proxy statement with the SEC. The shareholders’ meeting will be held about 30 days after the effectiveness of the proxy statement.
