NEW YORK, Feb. 21, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Emeritus Corporation ("Emeritus" or the "Company") (NYSE: ESC) (ISIN: US2910051067) (CUSIP: 291005106) concerning the proposed acquisition of Emeritus by Brookdale Senior Living Solutions, Inc.
The investigation concerns whether the Emeritus directors are breaching their fiduciary duties by failing to adequately shop the Company and maximize shareholder value. Under the merger agreement, Emeritus shareholders will receive 0.95 shares of Brookdale common stock in exchange for each share of their Emeritus common stock. Based on the closing price of each company's common stock on February 19, 2014, this exchange ratio implies a 32% premium on Emeritus' shares. However, the price to EBITDA, EBIT, Revenue, and Total Assets multiples are below the averages of comparable transactions. Additionally, there are indications that management will stay on with the new company.
Emeritus shareholders seeking more information about this acquisition are advised to contact Robert Willoughby at firstname.lastname@example.org or 212-661-1100 or 888-476-6529, ext. 237.
Pomerantz LLP, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz LLP pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz LLP continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
212-661-1100 ext. 237
SOURCE Pomerantz LLP