NEW YORK, Feb. 26, 2016 /PRNewswire/ -- The proposed acquisition of ITC Holdings Corp. ("ITC" or the "Company") by Fortis Inc. is being investigated by WeissLaw LLP for possible breaches of fiduciary duty and other violations of law by the Board of Directors of ITC. On February 9, 2016 the Company announced it had reached a definitive agreement for Fortis to acquire ITC in a transaction valued at approximately $11.3 billion, inclusive of debt. Under the terms of the agreement, shareholders of ITC will receive $22.57 in cash and 0.7520 of a Fortis share for each ITC share they own; representing a total per share consideration of $44.90.
WeissLaw is investigating whether ITC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the offer price represents a mere 8% premium over ITC's February 8 trading price of $41.38, which is substantially lower than the average premium in mergers and acquisitions of 20%-30%. In fact, since the announcement, the Company's share price has dropped, trading for as low as $35.53 on February 12; representing a decrease of approximately $6.00 or approximately 17%. Further, upon completion of the transaction, ITC shareholders will own a mere 27% of the newly combined company.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell ITC and whether ITC shareholders will obtain their fair proportionate share of the Company's continued success and future growth prospects. If you own ITC 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