Block & Leviton LLP Investigates Schawk, Inc. for Possible Breaches of Fiduciary Duty in Connection with Its Acquisition by Matthews International Corporation
BOSTON, March 17, 2014 /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 Schawk, Inc. ("Schawk" or the "Company") (NYSE: SGK) concerning the proposed acquisition of the Company by Matthews International Corporation ("Matthews") (NASDAQ: MATW), in a transaction with an enterprise value at approximately $577 million, including the assumption of debt. Under the terms of the transaction, Matthews will acquire each Schawk share for a combination of cash and Matthews common stock, representing a paltry premium of less than 36% compared to Schawk's closing share price on Friday, March 14, 2014. The Company's share price had shot up approximately 23% since early February, and the meager transaction premium in the proposed transaction would likely have surpassed in just months by Schawk's impending growth.
Investors in Schawk will receive $11.80 in cash and 0.20582 shares of Matthews common stock in the proposed transaction, which is expected to close no later than September, 2014. Members of the Schawk family and various Schawk family trusts, who collectively own approximately 61% of the common stock of Schawk, have agreed to vote in favor of the merger, questioning whether the interests of minority investors are truly being protected. In addition, Schawk CEO David Schawk is expected to take a seat on the Matthews Board of Directors, and will remain employed with the combined company, as the head of Schawk and Matthews' existing Brand Solutions business.
Block & Leviton's investigation seeks to determine, among other things, whether Schawk's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Matthews and the fairness by which the Schawk Directors considered and approved the transaction.
If you are a Schawk 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