SAN DIEGO and CLEVELAND, July 1, 2015 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the recent acquisition of OM Group Inc. (NYSE: OMG) by certain funds managed by affiliates of Apollo Global Management LLC (NYSE: APO). Under the terms of the June 1, 2015, OM Group shareholders will receive $34.00 in cash for each share of OM Group common stock.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/noteworthy-cases/om-group-inc
Is the Proposed Acquisition Fair for OM Group Shareholders?
On June 17, 2015, an OM Group investor filed a class action lawsuit in Delaware Chancery Court challenging the company's proposed acquisition. The complaint alleges that the deal was made through an unfair negotiation process and that it improperly buys shareholders out of a company that is headed for success. Additionally, the complaint alleges that OM Group and its directors breached their fiduciary duties of loyalty, good faith, due care, and full disclosure to the class by not considering other buyers before agreeing to the buyout.
Apollo is attempting to acquire OM Group for the $34.00 merger consideration that is significantly below a $49.00 target price set by an APB Financial Group analyst in March 2015. Financial analysts at BB&T Capital Markets and Northcoast Research have also appraised OM Group stock above the merger consideration, with target prices of $37.00 and $35.00, respectively. Moreover, the merger consideration's 17.9% premium, based on OM Group's closing price on May 1, 2015, is well below the average one month premium of 27% for comparable transactions within the past five years. The class action suit is thus seeking class certification and is requesting the court to block the deal.
OM Group shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP