Acquisition of Belo Corp. by Gannett Co., Inc. May Not Be in the Best Interests of Belo Shareholders
SAN DIEGO and DALLAS, June 17, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Belo Corp. (NYSE: BLC) by Gannett Co., Inc. (NYSE: GCI). On June 13, 2013, the companies jointly announced the signing of a definitive merger agreement under which Gannett will acquire all outstanding shares of Belo for $13.75 per share in cash.
Is the Acquisition Best for Belo and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Belo is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.
On April 25, 2013, Belo released financial results for its fiscal 2013 first quarter announcing gains in total revenue, comprised primarily of Internet advertising revenue and retransmission revenue. Specifically, Belo reported that the company's total revenue increased $4.4 million to $160.3 million for the quarter. Further, Belo's Internet advertising revenue increased 22% and its retransmission revenue increased 8% compared to the same quarter 2012. Moreover, Belo has exceeded analyst EPS and net income estimates in each of the past nine quarters.
Given these facts, the firm is examining Belo's board of directors' decision to merge with Gannett now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Belo shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner. Belo shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/belo-corp/
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SOURCE Robbins Arroyo LLP