Signet faces challenges in acquisition of Zale

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Signet faces two new challenges following its purchase of Zale, as the lawsuits weren’t able to halt the acquisition. According to Signet’s latest SEC filing, five shareholder suits that have been consolidated into one still stand, and if the merger is consummated, those shareholders will seek damages.

According to Reuters, three investment funds that held 26 per cent of Zale’s stock might ask for appraisal rights.

Voting on May 29 was 53 per cent in favour of the acquisition, and following that was the resignation of Jim Sullivan, vice president, controller and chief accounting of Zale, who left the day after. All members of the board, including chairman Terry Burman, also resigned. Replacing them are Signet executives Ronald W. Ristau, Lynn Dennison, and Michael W. Barnes, who are the new directors. CJ

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