Krispy Kreme Doughnuts (KKD) Active On Questionable Takeover Offer

Shares of Krispy Kreme Doughnuts Inc. (NYSE: KKD) have been active today on reports from Winston-Salem Journal of a questionable $7.25 a share bid from MGL Asset Management Group.

The report said there is questions about the legitimacy of the offer. Dee Guess, the managing director of MGL Asset Management, has had multiple lawsuits filed against him and has used known alias including Mario Guess, J.D. Guess and Jerry D. Guess. In addition, the phone number listed on MGL's website disconnected after a brief message.� The paper also said, "There is no listing of principals in the company, no companies under MGL's management or ownership, and no track record of the principals managing and owning businesses." MGL was listed as incorporating in January on the N.C. Secretary of State's Web site.

In an e-mail statement to the paper, Guess said the offer was legitimate

A finance professor at UNC Charlotte, Tony Plath, said, "Unless this is a front for somebody with real money, my instincts are telling me scam, scam, scam."

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