Fortune Industries Inc. shares on Monday jumped as much as 285 percent from Friday’s closing price. The New York Stock Exchange found the move and an intense spike in trading volume so odd that it asked the company for answers.
The proposed buyer is CEP Inc., a holding company led by Fortune Industries CEO Tena Mayberry and Chief Financial Officer Randy Butler, who first bid for the company last March.
The professional employer organization has terminated its purchase agreement with Ide Management Group LLC of Greenfield and now plans to pursue a sale it had explored previously.
Mark Haagen had sought class-action status on behalf of certain shareholders, charging that the price offered in a proposed sale for each share in the company is too low. Haagen voluntarily dismissed the suit.
Sale to managers would alleviate problems for company’s 70-year-old namesake and keep firm from being seized by bank.
A shareholder of Indianapolis-based Fortune Industries Inc. has filed suit against the public company and its top executives, seeking class-action status on behalf of shareholders who want to stop a transaction that would take it private.
The company is set to be purchased by CEP Inc., a holding company led by Fortune Industries CEO Tena Mayberry and Chief Financial Officer Randy Butler. But several law firms are investigating the sale for potential unfairness on behalf of shareholders.
The Indianapolis-based professional employer organization reported a profit of $265,000 in the first quarter after posting a loss of $426,000 in the same three months last year.
Indianapolis-based professional employer organization reported fiscal-year profit of $828,000, an 85-percent increase from fiscal 2009. Revenue, however, fell 20 percent, to $60.7 million.