BOSTON, April 27, 2015 /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 iGATE Corporation ("iGATE" or the "Company") (NASDAQ: IGTE) concerning the proposed acquisition of the Company by Cap Gemini S.A. ("Cap Gemini"), in a transaction valued at approximately $4 billion. Under the terms of the proposal, Cap Gemini will acquire each iGATE share for $48.00 in cash, a paltry premium of approximately 4.7%. Not surprisingly, because it was able to acquire iGATE at such a substantial discount to its true value, shares of Cap Gemini soared as high as $85.77 upon the announcement of the proposed transaction, representing double the premium received by iGATE shareholders.
Market reports have stated that Cap Gemini has already secured voting power of 54% to push the deal through. This support is likely underpinned by the nearly 26% of the Company held by Ashok Trivedi and Sunil Wadhwani, the co-founders and co-chairmen of iGATE. The two co-founders will collect approximately $1.0 billion of the total $4 billion in merger consideration expected to be paid in the proposed deal. The high analyst price target on the investment website Yahoo! Finance was $55.00, approximately 15% greater than the offer price. The value of the Company's shares has increased approximately 35% in just the past 4 months.
Block & Leviton's investigation seeks to determine whether iGATE's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Cap Gemini and the fairness by which the iGATE Directors considered and approved the transaction.
If you are an iGATE 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 [email protected].
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 60 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP