In Brief: Crandon v. Maybelline
This article was originally published in The Rose Sheet
Executive Summary
Crandon v. Maybelline: Maybelline stockholder Crandon Capital Partners filed class action suit seeking an injunction to block the merger between Maybelline and Paris-based L'Oreal S.A., according to a Dec. 11 complaint. Crandon is charging the cosmetic company with "breach of...fiduciary duties owed to Maybelline's stockholders to take all necessary steps to ensure that the stockholders will receive the maximum value realizable for their shares." Crandon alleged that Maybelline did not "retain an independent investment banker to advise them as to Maybelline's value as an acquisition candidate" and instead relied on advice from Wasserstein, Perella -- Maybelline's largest shareholder -- which "has its own personal reasons to agree to the [merger] without necessarily achieving the best terms for Maybelline's public shareholders." Filed in Chancery Court in Delaware, the complaint requires defendants to "place [Maybelline] up for auction and/or conduct a market-check prior to" selling the company. The suit was filed the day after the announcement that L'Oreal would acquire Maybelline ("The Rose Sheet" Dec. 18, p. 1)...
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Marketing In Brief
ModiFace launches forecasting tool: Toronto-based virtual makeover firm introduces ShadeCast, a makeup sampling and forecasting tool based on behavioral tracking. ShadeCast is used in conjunction with iPhone application MakeUp, which allows consumers to virtually try on makeup in hundreds of shades from brands including Revlon, Cover Girl, Lancome and Clinique. ShadeCast offers 1,000 cosmetic shades from 40 brands and assigns a ShadeScore "to approximately position the [app's] hottest and most sampled color." ModiFace exec Nikkie Gatto likens the app to radio music playlists, helping consumers "looking to capture the current look, but also provide vital market intelligence to our retail channel partners," she says in Nov. 3 release. "The value of data to demonstrate the aggregate behavior will help the industry predict the latest trends and help cosmetic manufacturers better understand the color and products which most resonate with online and iPhone virtual makeover users," the company says