Acquisition of White River Capital by Parthenon Capital May Not Be in the White River Shareholders' Best Interests
SAN DIEGO and RANCHO SANTA FE, Calif., Nov. 16, 2012 /PRNewswire/ -- Shareholder rights attorneys at Robbins Umeda LLP are investigating possible breaches of fiduciary duty and other violations of the law by members of the board of directors of White River Capital, Inc. (NYSE: RVR) in connection with their efforts to sell the company to the private equity firm Parthenon Capital Partners.
On November 15, 2012, White River and Parthenon announced they had entered into a definitive merger agreement under which Parthenon will acquire White River through an all cash tender offer with a total value of $79.5 million. Parthenon shareholders will receive $21.93 per share. The merger agreement also provides for a termination fee of $3.975 million dollars, more than 5% of the value of the deal.
The Board of Directors' Actions May Prevent White River Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP's investigation focuses on whether the board of directors at White River is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. The offer price is below the company's stock closing price of $21.99 reached on November 12, 2012, and substantially below the $27.80 per share price the Company's stock traded at less than a year ago. Further, the company's financials have remained strong in the face of challenging economic conditions faced by the industry, leading Chief Financial Officer, Martin J. Szumski, to comment recently that the company has been successful in "generating strong economic growth" despite these conditions. Given these financials and the company's historical stock price, the firm is examining the board of directors' decision to sell White River now, rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
White River shareholders have the option to file a class action lawsuit against the company 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. White River 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 Umeda 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.robbinsumeda.com.
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SOURCE Robbins Umeda LLP