* J Crew says to settle shareholder lawsuit over takeover
* Did not receive any alternative proposals yet
* "Go-shop" period extended until Feb. 15
(Adds J Crew's statement confirming settlement, other details,
CHICAGO, Jan 18 Clothing retailer J Crew Group
Inc JCG.N is set to settle a shareholder lawsuit over its
proposed takeover by private equity firms TPG Capital [TPG.UL]
and Leonard Green & Partners LP.
A $2.86 billion deal to acquire J Crew was announced on
Nov. 23, with TPG Group and Leonard Green & Partners LP
agreeing to buy the company for $43.50 a share, a premium of
about 15 percent.
Lawsuits have protested the proposed sale price and
asserted that J Crew Chairman and Chief Executive Millard
Drexler potentially breached his fiduciary duties to
J Crew said that it and other defendants agreed to settle
the putative class action lawsuit pending in Delaware chancery
court. The agreement with the plaintiffs is subject to court
J Crew received no rival takeover bids during its "go shop"
period and will remain with its original $2.86 billion buyout
offer from TPG Capital and Leonard Green & Partners LP, a
source familiar with the situation told Reuters on Sunday.
The "go shop" period to solicit competing offers, which
expired on Jan. 15, was extended until Feb. 15 as part of the
The pact also includes a $10 million payment to plaintiffs,
payable if and when TPG Capital and Leonard Green buy J Crew.
The Federal Trade Commission granted early termination of
the mandatory Hart-Scott-Rodino waiting period, J Crew added.
Shareholders of record as of Jan. 21 will be able to vote
on the merger at a meeting set to be held on March 1, J Crew
Shares of J Crew fell 0.9 percent to $43.43 in midday
trading on the New York Stock Exchange.
Bloomberg previously reported that J Crew was close to
settling the suit, citing two people with knowledge of the
(Reporting by Sakthi Prasad in Bangalore and Jessica Wohl in
Chicago; Editing by Mike Nesbit and Tim Dobbyn)