WeissLaw LLP: The Proposed Acquisition of Breeze-Eastern Corporation May Not Be In The Interests of BZC Shareholders

Dec 07, 2015, 16:40 ET from WeissLaw LLP

NEW YORK, Dec. 7, 2015 /PRNewswire/ -- The proposed acquisition of Breeze-Eastern Corporation ("BZC" or the "Company") by TransDigm Group Incorporated ("TransDigm") is being investigated by WeissLaw LLP for possible breaches of fiduciary duty and other violations of law by the Board of Directors of BZC.  On November 19, 2015, the Company announced it had reached a definitive agreement for TransDigm to acquire all outstanding shares of BZC in a transaction valued at approximately $206 million.  Under the terms of the agreement, BZC shareholders will receive $19.61 in cash for each BZC share they own. 

WeissLaw is investigating whether BZC's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, the Company's shares traded at $21.25, or approximately $2.00 above the offer price, a little over two weeks prior to the announcement.  Additionally, BZC announced positive financial results in the second quarter of fiscal year 2016.  It reported sales of $23.9 million as compared with $17.7 million in the same period of the previous year, representing an increase of 35% year-over-year.  It also reported an increase of $2.3 million in net income from the $0.6 million reported in the second quarter of fiscal year 2015.   

Given these facts, WeissLaw is investigating whether BZC's Board acted in the best interests of BZC's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with TransDigm.  If you own BZC shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.

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