Minority shareholders unhappy with Hanover Direct deal
December 29, 2006,
Weehawken, N.J. – A pair of shareholders are battling in court over Hanover Direct’s potential acquisition by its largest shareholder, hedge fund Chelsey Direct.
Hanover Direct’s stock has been trading at around 30 cents.
The plaintiffs are seeking class action certification. Their previous complaint involved Chesley’s initial proposal to take Hanover Direct private. That plan was later dropped.
Hanover Direct contends the complaint is without merit. The company expects to hold its annual shareholder meeting in March or April to put the merger to a vote.
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