BOSTON, Jan. 2, 2013 /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 Zipcar, Inc. ("Zipcar" or the "Company") (NASDAQ: ZIP) concerning the proposed acquisition of the Company by Avis Budget Group Inc. ("Avis") in an all cash transaction.
Under the terms of the proposed merger, Avis will acquire Zipcar in a deal for approximately $12.25 per Zipcar share, setting a value for Zipcar at approximately $491 million. The Company traded above the offer price as recently as June 29, 2012, and the price fails to take into account the fact that Zipcar common stock is poised to recover from the market over-reaction caused by the Company reporting financial results slightly below expectations in August 2012. Indeed, the Company, according to a recent press release, had recently raised its full-year guidance and was set to deliver its first year of profitability. Revenue and membership both experienced double digit growth over the past quarter. These positive announcements and forecasts drove the stock to nearly a 40% gain in just the previous 36 days of trading prior to the Avis announcement. As such, it appears that the proposed transaction premium offers insufficient recognition of Zipcar's growth potential.
Block & Leviton's investigation seeks to determine, among other things, whether Zipcar's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Avis and the overall fairness of the process by which the Zipcar Directors considered and approved the transaction.
If you are a Zipcar 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 Steven@blockesq.com.
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 50 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP