NEW YORK, May 24, 2016 /PRNewswire/ -- Milberg LLP is
investigating possible breaches of fiduciary duty and other
violations of law in connection with the proposed acquisition of
Xura, Inc., (MESG), by affiliates of Siris Capital Group, LLC
("Siris").
On May 23, 2016, Xura announced
that it had entered into a definitive agreement to be acquired by
Siris for all outstanding shares of Xura's common stock in a deal
valued at approximately $643 million.
Under the terms of the agreement, shareholders of Xura will receive
$25.00 in cash for each share of Xura
common stock.
Milberg LLP's investigation is focusing on the potential
unfairness of the consideration being provided to Xura's
stockholders and the process by which Xura's Board of Directors
considered and approved the proposed deal. Under the
circumstances, including as described below, Milberg LLP is
scrutinizing the decision of Xura's Board to sell the company at
this time, which will deny Xura's public stockholders the
opportunity to participate and share in Xura's future prospects for
business and financial success and growth.
Among other things, the $25.00
merger consideration is substantially below multiple recent analyst
target price estimates, and is below Xura's recent trading
prices. For instance, Xura stock has traded above the proposed
$25.00 per share merger consideration
as recently as late 2015. Also, Xura traded at a 52-week high of
$26.63 per share and, according to at
least one analyst, Xura has a high target price of $30.00, well above the amount that Xura
shareholders would receive under the proposed sale. In
addition, on April 15, 2016, Xura
reported very positive preliminary fourth quarter 2015 financial
results, with total revenue for the quarter of $82 million (28% over to the same period in 2015)
and adjusted EBITDA of $14 million
(250% over the same period in 2015).
Concerned investors are invited to contact the Milberg attorneys
listed below to discuss the investigation, their rights, or
potential remedies.
Founded in 1965, Milberg LLP was one of the first law firms to
prosecute class actions in federal courts on behalf of investors
and consumers and has been representing investors and
consumers for more than four decades. Milberg LLP is widely
recognized as a leader in defending the rights of victims of
corporate and other large-scale wrongdoing, serving as lead counsel
in federal and state courts throughout the United States. For
more information, please visit the firm website at
www.milberg.com.
Contacts:
Milberg LLP
Kent A. Bronson
kbronson@milberg.com
Joshua Keller
jkeller@milberg.com
(212) 594-5300
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SOURCE Milberg LLP