SAN DIEGO, Aug. 26, 2016 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Rackspace Hosting, Inc. (NYSE: RAX) breached their fiduciary duties in connection with the proposed sale of the Company to affiliates of Apollo Global Management, LLC. Rackspace provides managed cloud services in the business information technology (IT) market worldwide.
On August 26, 2016, Rackspace announced it had signed a definitive merger agreement with Apollo. Under the terms of the agreement Rackspace shareholders will receive $32.00 per share in cash. The investigation concerns whether the Rackspace board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Rackspace shares of common stock. Nationally recognized Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration; especially given that the price target for one Wall Street analyst is $44.00. The 52-week high for Rackspace stock is $32.14.
If you are a shareholder of Rackspace and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
SOURCE Johnson & Weaver, LLP