Robbins Arroyo LLP: Acquisition of FEI Company (FEIC) by Thermo Fisher Scientific Inc. (TMO) May Not Be in Shareholders' Best...
May 27 2016 - 1:49PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of FEI Company (NASDAQ:
FEIC) by Thermo Fisher Scientific Inc. (NYSE: TMO). On May 27,
2016, the two companies announced the signing of a definitive
merger agreement pursuant to which Thermo Fisher will acquire FEI
Company. Under the terms of the agreement, FEI Company shareholders
will receive $107.50 for each share of FEI Company common
stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/fei-company
Is the Proposed Acquisition Best for FEI Company and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at FEI Company is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $107.50 merger consideration
represents a premium of only 13.70% based on FEI Company's closing
price on May 26, 2016. This premium is significantly below the
average one day premium of nearly 52.47% for comparable
transactions within the past year. Additionally, in the last three
years FEI Company traded as high as $111.57 on March 5, 2014.
On May 4, 2016, FEI Company reported strong earnings results for
its first quarter 2016. FEI Company reported revenue of $229
million for the three months ended April 3, 2016, an increase of
3.5% from the same period of the prior year. FEI Company also
reported record backlog orders of $656 million for the three months
ended April 3, 2016, a 22% increase from the same period of the
prior year. Additionally FEI Company has beaten analyst estimates
for adjusted net income and adjusted earnings per share for the
past four quarters, and has beat analyst estimates for revenue in
three of the past four quarters. In commenting on these results,
FEI Company Chief Executive Officer Don Kania remarked, "We had a
solid start to 2016. Our Science Group drove record first quarter
orders, underpinned by robust cryo-EM activity as new customer
enthusiasm for our structural biology solutions continues to build.
Our record backlog positions us for accelerated revenue and
profitability growth as 2016 progresses. In the semiconductor
market, we expect a healthier spending environment in the second
quarter and the back half of the year."
In light of these facts, Robbins Arroyo LLP is examining FEI
Company's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
FEI Company shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
FEI Company shareholders interested in information about their
rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, 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.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160527005727/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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