NEW YORK, May 19, 2015 /PRNewswire/ -- Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of MCG Capital Corp. ("MCG Capital" or the "Company") (Nasdaq: MCGC) for potential breaches of fiduciary duties in connection with the sale of the Company to PennantPark Floating Rate Capital Ltd. ("PennantPark") (Nasdaq: PFLT) for approximately $175 million in a cash and stock transaction. The Company's stockholders will receive $4.521 in PennantPark shares, as well as $0.226 in cash for each share of MCG Capital common stock they own. The deal values each share of MCG Capital at around $4.75 for each share, which represents a premium of about 15.8% to MCG Capital's April 28, 2015 closing price. Additionally, at least one analyst has estimated a price of $4.20 for a share of MCG Capital.
The investigation focuses on whether MCG Capital's Board of Directors breached their fiduciary duties to the Company's stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of MCG Capital's shareholders.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients. To keep track of the latest securities litigation news, follow us on Twitter at www.twitter.com/MergerActivity or on Facebook at www.facebook.com/FaruqiLaw.
If you own common stock in MCG Capital and wish to obtain additional information and protect your investments free of charge, please visit us at www.faruqilaw.com/MCGC or contact Juan E. Monteverde, Esq. either via e-mail at [email protected] or by telephone at (877) 247-4292 or (212) 983-9330.
Contact: Faruqi & Faruqi, LLP 369 Lexington Avenue, 10th Floor New York, NY 10017 Attn: Juan E. Monteverde, Esq. [email protected] Toll Free: (877) 247-4292 Phone: (212) 983-9330
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