Robbins Arroyo LLP: Acquisition of Outerwall Inc. (OUTR) by Apollo Global Management LLC (APO) May Not Be in Shareholders' Be...
July 26 2016 - 3:10PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Outerwall Inc. (NASDAQ:
OUTR) by Apollo Global Management LLC (NYSE: APO). On July 25,
2016, the two companies announced the signing of a definitive
merger agreement pursuant to which Apollo Global Management will
acquire Outerwall. Under the terms of the agreement, Outerwall
shareholders will receive $52.00 for each share of Outerwall common
stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/outerwall-inc
Is the Proposed Acquisition Best for Outerwall and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Outerwall is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $52.00 merger consideration is
significantly below the target price of $58.00 set by an analyst at
B. Riley & CO. on April 25, 2016. In the last three years,
Outerwall traded as high as $85.26 on July 21, 2015, and most
recently traded above the merger consideration – at $59.19 – on
December 7, 2015.
On April 28, 2016, Outerwall reported strong earnings results
for its first quarter 2016. Outerwall reported net income of $38.5
million for the three months ended March 31, 2016, an 8.0% increase
from the same period of the prior year. Outerwall also reported
diluted earnings per share from continuing operations of $2.29 for
the three months ended March 31, 2016, a 2.7% increase from the
same period of the prior year. Outerwall also beat analyst
estimates for adjusted net income and adjusted earnings per share
for the past four quarters. In commenting on these results,
Outerwall Chief Executive Officer Erik E. Prusch remarked,
"Outerwall delivered solid results in the first quarter,
demonstrating our continued ability to generate sustainable cash
flow and profitability. We will continue to leverage our valued and
compelling brands, millions of loyal customers, and an unrivaled
network of kiosks and retail partners."
In light of these facts, Robbins Arroyo LLP is examining
Outerwall'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.
Outerwall 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.
Outerwall 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/20160726006417/en/
Robbins Arroyo LLPDarnell R. Donahue619-525-3990 or Toll-Free
800-350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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