Block & Leviton LLP Investigates DIRECTV for Possible Breaches of Fiduciary Duty in Connection with Its Proposed Acquisition by AT&T, Inc.
BOSTON, May 18, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible breaches of fiduciary duty by the Board of Directors of DIRECTV (or the "Company") (Nasdaq GS: DTV) concerning the proposed acquisition of the Company by AT&T, Inc. ("AT&T") (NYSE: T). AT&T will pay approximately $48.5 billion exclusive of the Company's debt.
Under the terms of the proposed transaction, DIRECTV shareholders will receive a mix of stock and cash with a combined value of $95.00 per share, a paltry 10% premium to DIRECTV's closing share price on Friday, May 16, 2014 (the last day of trading prior to the announcement of the merger). As noted by several media outlets, the proposed transaction will face scrutiny by federal regulators, who are already weighing Comcast's $45 billion bid for Time Warner Cable. For the year ended 2013, DIRECTV had approximately $2.6 billion in cash on hand.
The acquisition follows a year of tremendous growth by DIRECTV, which has seen its stock price skyrocket. For example, the Company's share price hit a 52-week low of $57.05 on August 27, 2013 and rose as high as $89.46 on May 13, 2014. At least one analyst, according to the investment website Yahoo! Finance, has placed a target price of $100 per share, well above the acquisition price.
Block & Leviton's investigation seeks to determine, among other things, whether DIRECTV's directors breached their fiduciary duties by failing to maximize shareholder value in the potential acquisition and the process by which the directors considered and approved the transaction. Block & Leviton is also investigating potential aiding and abetting of fiduciary breaches by AT&T.
If you are a DIRECTV 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 70 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP