Citing a 2001 agreement with their licensing partner DIC Entertainment Holdings (pronounced Deek), American Greetings Corp. (NYSE:AM) won a temporary restraining order against them being sold to Cookie Jar Group, based in Toronto, Canada. The Cookie Jar Group is a privately held children's entertainment company.
According to American Greetings, the 2001 agreement doesn't allow DIC to transfer the Stawberry Shortcake rights without their approval.
"We expected this, and frankly we don't consider that it has any merit," Andy Heyward, chief executive of DIC Entertainment, said of American Greetings' lawsuit. "We are prepared to move forward with the merger, and we are moving forward."
Heyward added that much of the impetus for the deal comes from an increasingly competitive children's entertainment market. "It's not a favorable environment for a small, entrepreneurial company," said Heyward.
DIC claims the Stawberry Shortcake brand has generated close to $3 billion in retail sales alone over the last four years. DIC is the producer of the Television series for CBS (NYSE:CBS-A).
Cookie Jar has offered $31.5 million for DIC, or $0.7153 a share. It would also pay $14 million in transaction fees, as well as assume $42 million in debt.
DIC struggled in 2007, having a loss of $36.6 million on $75 million in revenue. DIC trades on the London Stock Exchange.
DIC it seems to me will find the place and at them all will be adjusted!
Posted by: Bernard Lavilliers | June 23, 2008 11:13 AM | Permalink to Comment