NEW YORK, Dec. 8, 2015 /PRNewswire/ -- The proposed merger of American Residential Properties, Inc. ("ARPI" or the "Company") and American Homes 4 Rent ("AMH") is being investigated by WeissLaw LLP for possible breaches of fiduciary duty and other violations of law by the Board of Directors of ARPI. On December 3, 2015, the Company announced that the Board approved a definitive agreement to merge with AMH in a tax-free transaction valued at approximately $1.5 billion. Under the terms of the agreement, shareholders of ARPI will receive 1.135 common shares or limited partnership units of AMH for each ARPI share they own; representing a consideration of $19.01 per share.
WeissLaw is investigating whether ARPI's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the offer price represents a mere 7 % premium over ARPI's December 2 trading price of $17.74, which is substantially lower than the recommended 20%-30% range. Additionally, at least one analyst set a target price of $23.00 per share, or approximately $4.00 above the offer price. Further, upon completion of the transaction, ARPI shareholders will own a mere 12.6% of the newly formed company.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell ARPI and whether ARPI shareholders will obtain their fair proportionate share of the Company's continued success and future growth prospects. If you own ARPI shares and would like more information about your rights or our investigation, please contact Joshua Rubin either by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
SOURCE WeissLaw LLP