Law Firm Brower Piven Announces Investigation of Nalco Holding Co.

The law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of Nalco Holding Co. (“Nalco”) (NYSE: NLC) and other violations of state law by the Board of Directors of Nalco relating to the proposed acquisition of the company by Ecolab Inc. (“Ecolab”) (NYSE: ECL). The firm’s investigation seeks to determine whether Nalco’s Board breached their fiduciary duties by, among other things, failing to maximize shareholder value.

On July 20, 2011, Nalco announced that it has entered into a definitive merger agreement for Nalco to be acquired by Ecolab, with a total transaction value of approximately $8.1 billion, which includes Ecolab’s assumption of $2.7 billion in Nalco outstanding debt. According to the press release, Nalco’s shareholders may elect to receive either 0.7005 shares of Ecolab common stock per share of Nalco common stock or $38.80 in cash, without interest, per share of Nalco common stock. While the press release states that the transaction represents a 34% premium to Nalco’s closing stock price on July 19, 2011, Nalco has been growing steadily. Last year, Nalco reported $196.2 million in net income on top almost $4.3 billion in revenue, and its shares have risen 27% over the last 12 months. Indeed, Nalco recently announced that it sees continued price progress and forecasted margin improvement in the second half of 2011.

If you own Nalco common stock and would like to learn more about the investigation being conducted by Brower Piven, you may email or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.

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