SAN DIEGO, May 23, 2016 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of American Capital, Ltd. (NASDAQ: ACAS) breached their fiduciary duties in connection with the proposed sale of the Company to Ares Capital Corporation (NASDAQ: ARCC).
American Capital is a private equity and venture capital firm.
On May 23, 2016, American Capital announced it had signed a definitive merger agreement with Ares Capital. Under the terms of the transaction, American Capital shareholders will receive total cash and stock consideration of $14.95 per fully diluted share. American Capital shareholders will receive $6.41 in cash per share, plus 0.483 Ares Capital shares for each American Capital share, or $7.34 per share based on Ares Capital's closing stock price of $15.19 as of Friday, May 20, 2016.
In a separate transaction, American Capital also announced that it is selling American Capital Mortgage Management to American Capital Agency for $2.45 per fully diluted share. Collectively, the transactions represent total value for American Capital shareholders of $17.40 per fully diluted share. However, American Capital shareholders will be subject to the future volatility and price fluctuation of the common stock of Ares Capital.
The investigation concerns whether the American Capital board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for American Capital shares of common stock. Nationally recognized Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration; especially given that the price target for one Wall Street analyst is $18.00.
If you are a shareholder of American Capital and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP