BALA CYNWYD, Pa., July 14, 2010 (GLOBE NEWSWIRE) -- Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Playboy Enterprises, Inc. ("Playboy Enterprises" or the "Company") (NYSE:PLA) relating to the proposed acquisition by Hugh Hefner ("Hefner") and private equity firm, Rizvi Traverse Management, LLC. Under the terms of the proposed offer, Playboy Enterprises shareholders would receive $5.50 for each share of Playboy Enterprises stock they own.
The investigation concerns possible breaches of fiduciary duty and other violations of state law. A few hours after the offer was announced, the corporate parent of rival Penthouse magazine said it would also make a bid. Specifically, Hefner, who owns about 70 percent of the company voting shares and 28 percent of the nonvoting stock, has made it clear that he is not interested in a sale or merger. Playboy Enterprises shareholders need additional information to know what actions the board took to adequately shop the Company and whether Hefner is underpaying for Playboy Enterprises, resulting in harm to the Playboy Enterprises shareholders.
If you own shares of Playboy Enterprises and wish to discuss the legal ramifications of the proposed transaction, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at investorrelations@brodsky-smith.com, or by calling toll free 877-LEGAL-90.