Acquisition of Hi-Tech Pharmacal Co., Inc. by Akorn, Inc. May Not Be in the Best Interests of Hi-Tech Pharmacal Co., Inc. Shareholders
SAN DIEGO and AMITYVILLE, N.Y., Aug. 27, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK) ("Hi-Tech") by Akorn, Inc. (NASDAQ: AKRX) ("Akorn"). On August 27, 2013, the two companies announced a definitive merger agreement under which Akorn will acquire Hi-Tech for $43.50 in cash for each share of Hi-Tech stock. The transaction is expected to close in the first quarter of 2014.
Is the Merger Best for Hi-Tech and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Hi-Tech is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.
As an initial matter, the $43.50 merger consideration represents a premium of only 23.54% based on Hi-Tech's closing price on August 26, 2013. That premium is substantially below the average one-day premium of 52.8% for comparable transactions in the past five years. In addition, Hi-Tech directors and the trusts in which they are trustees, who collectively own 14.3% of the outstanding shares have agreed to: (i) vote their shares in favor of the merger; (ii) vote against any acquisition proposal or other action that would prevent or delay the merger; and (iii) seek the joinder of certain of their family members to the merger who collectively own an additional 4.3% of the outstanding shares.
Given these facts, Robbins Arroyo is examining Hi-Tech's board of directors' decision to sell the company to Akorn now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects, and whether they are seeking to benefit themselves.
Hi-Tech 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. Hi-Tech shareholders interested in information about their rights and potential remedies can contact attorney 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/hi-tech-pharmacal-co-inc/
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SOURCE Robbins Arroyo LLP