SAN DIEGO and NEW YORK,
Feb. 18, 2014 /PRNewswire/
-- Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Forest Laboratories, Inc.
(NYSE: FRX) by Actavis plc (NYSE: ACT). On February 18, 2014, the companies announced the
signing of a definitive agreement pursuant to which Actavis will
acquire all outstanding shares of Forest stock for $26.04 per share in cash and 0.3306 Actavis
shares for each share of Forest common stock, a cash value of
$89.48 per share.
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Is the Proposed Merger Best for Forest and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Forest is undertaking a fair process to obtain
maximum value and adequately compensate Forest shareholders.
As an initial matter, the $89.48 merger consideration represents a premium
of only 25.3% based on Forest's closing price on February 14, 2014. That premium is
substantially below the average one day premium of over 43% for
comparable transactions in the past three years.
In addition, on January 21, 2014,
Forest released its financial results for the third quarter 2013,
reporting an increase in revenues and net sales. Specifically,
Forest reported a 24.9% increase in net sales to $846.8 million, from $678
million in the prior year quarter. The increase in net sales
was driven by sales in the company's next generation products,
which increased 59.4% compared to the third quarter of 2013. In
addition, revenues for the nine months ended December 31, 2013 increased 12% to $2,554.6 million. Moreover, on February 3, 2014, Forest announced the completion
of the acquisition of Aptalis which is expected to add
approximately $700 million in revenue
and about $0.78 per share to the
company's non-GAAP EPS in the 2015 fiscal year.
Given these facts, Robbins Arroyo LLP is examining the Forest
board of directors' decision to sell the company to Actavis now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Forest 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. Forest 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.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP