Robbins Arroyo LLP: Acquisition of NetSuite Inc. (N) by Oracle (ORCL) May Not Be in Shareholders' Best Interests
July 28 2016 - 3:41PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of NetSuite Inc. (NYSE: N)
by Oracle Corporation (NYSE: ORCL). On July 28, 2016, the two
companies announced the signing of a definitive merger agreement
pursuant to which Oracle will acquire NetSuite. Under the terms of
the agreement, NetSuite shareholders will receive $109.00 for each
share of NetSuite common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/netsuite-inc
Is the Proposed Acquisition Best for NetSuite and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at NetSuite is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $109.00 merger consideration
represents a premium of only 19% based on NetSuite's closing price
on July 27, 2016. This premium is significantly below the average
one day premium of nearly 28.14% for comparable transactions within
the past three years. Further, the $109.00 merger consideration is
significantly below the target price of $130.00 set by an analyst
at D.A. Davidson & Co. back on November 14, 2014. In the last
three years, NetSuite traded as high as $120.77 on February 27,
2014, and most recently traded above the merger consideration – at
$109.51 – on January 23, 2015.
On July 28, 2016, NetSuite reported strong earnings results for
its second quarter 2016. NetSuite reported total revenue of $230.8
million for the three months ended June 30, 2016, a 30% increase
over the same period of the prior year. NetSuite has also beaten
analyst estimates for adjusted net income and adjusted earnings per
share for the last four quarters, and has beaten analyst estimates
for revenue in three of the past four quarters.
In light of these facts, Robbins Arroyo LLP is examining
NetSuite'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.
NetSuite 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.
NetSuite 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/20160728006557/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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