NEW YORK, May 31, 2016 /PRNewswire/ -- Milberg LLP is investigating possible breaches of fiduciary duty and other violations of law in connection with the proposed acquisition of American Capital, Ltd. (ACAS) ("American Capital" or the "Company") to Ares Capital Corporation (ARCC) ("Ares").
On May 23, 2016, American Capital and Ares announced that they have entered into a definitive merger agreement under which Ares will acquire American Capital. As a result of separate transactions, one involving the sale of American Capital to Ares and another involving the sale of American Capital's mortgage portfolio subsidiary (American Capital Mortgage Management, LLC) to another entity (American Capital Agency Corp. (NASDAQ: AGNC), American Capital stockholders will receive an aggregate of approximately $17.40 in a combination of cash and Ares stock for each share of American Capital owned.
Milberg LLP's investigation is focusing on the potential unfairness of the consideration being offered to American Capital's stockholders, as well as the process by which American Capital's Board of Directors considered and approved the proposed deal, and is (among other things) scrutinizing the Board's decision to sell the Company at this time under the circumstances, including among others those described below, rather than allowing American Capital's stockholders the full opportunity to continue to participate and share in America Capital's future prospects for business and financial success and growth.
Among other things, the approximately $17.40 merger consideration is below the target price of $18.00 per share recently set by at least one independent stock analyst. In addition, on May 6, 2016, American Capital recently reported strong financial results for its first quarter 2016. For example, American Capital's total operating income for that quarter reportedly increased 5.2% (to $162 million) when compared to the same period in the prior year, and its net operating income reportedly rose 48% (to $74 million) compared to the same period the prior year.
Concerned investors are invited to contact the Milberg attorneys listed below to discuss the investigation, their rights, and/or potential remedies.
Founded in 1965, Milberg LLP was one of the first law firms to prosecute class actions in federal courts on behalf of investors and consumers and has been representing investors and consumers for more than four decades, and has recovered billions of dollars on behalf of aggrieved stockholders and consumers in complex class and derivative litigation nationwide. Milberg LLP, with offices in Manhattan, Los Angeles and Detroit, is widely recognized as a leader in defending the rights of victims of corporate and other large-scale wrongdoing, serving as lead counsel in federal and state courts throughout the United States. For more information, please visit the firm website at www.milberg.com.
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SOURCE Milberg LLP