BOSTON, March 9, 2012 /PRNewswire/ -- Block & Leviton LLP, a Boston based law firm with experience representing investors nationwide, is investigating possible breaches of fiduciary duties by the Board of Directors of Quest Software Inc. ("Quest" or the "Company") (Nasdaq: QSFT) concerning an offer by private equity firm Insight Venture Partners ("IVP") to take the Company private in a transaction valued at only $2 billion.
The investigation centers on whether Quest's Board of Directors adequately protected shareholder interests, and properly maximized shareholder value, by agreeing to sell the Company for $23 per share, which represents a mere 19% premium over yesterday's closing price. The Company traded as high as $26.15 as recently as May 2011 and at least one analyst has targeted the shares at $29.00.
Under the terms of the proposed acquisition, Quest's CEO, Vincent C. Smith, and members of Mr. Smith's management team will continue to run the Company after it is taken private. The agreement also calls for an onerous $4.2 million breakup fee paid to IVP if the deal falls through during a 60 day "go-shop" period. That fee rises to a $6.3 million after the end of the period.
If you own stock in Quest and have any questions, or are interested in learning more about how to protect your rights, please contact us.
BLOCK & LEVITON LLP
Whitney E. Street
The attorneys at Block & Leviton have more than 50 years of experience in representing individual and institutional investors in shareholder rights actions.
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SOURCE Block & Leviton LLP