BOSTON, Nov. 8, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duty by the Board of Directors of Costa, Inc. ("Costa" or the "Company") (NASDAQ: ATX) concerning the proposed acquisition of the Company by Essilor International ("Essilor") in an all cash transaction.
Under the terms of the proposed transaction, Essilor will acquire Costa for $21.50 per share, representing a total deal value of approximately $270 million. The transaction is expected to close in early 2014. Shareholders will collect a paltry 7% premium on the prior day's closing price. Indeed, in just the previous year, the Company's stock price had increased by an astronomical 135%, and analysts covering the stock set a target price as high as $29.00 per share. Costa is flush with cash, lowering the true premium of the transaction to below the previous closing price. Moreover, the transaction appears purposely timed to forestall a surge in the Company's share price, as it was announced in conjunction with the Company's glowing third quarter 2013 results. Costa announced that its sales had increased 26.3% for the quarter, and 20.7% for the nine months ended September 2013. Indeed, David Walen, Costa's CEO, stated in announcing the third quarter results that "our confidence in our business model and its growth potential is high." As such, it appears that the proposed offer price provides an insufficient premium to shareholders to compensate them for the loss of the Company's future growth.
Block & Leviton's investigation seeks to determine, among other things, whether Costa's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Essilor and the overall fairness of the process by which the Costa Directors considered and approved the transaction.
If you are a Costa shareholder and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, at
(617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP