The Law Office of Abe Shainberg Launches an Investigation into the Possible Breaches of Fiduciary Duty by the Board of Arbine...
November 16 2010 - 6:29PM
Business Wire
The Law Office of Abe Shainberg is investigating the Board of
Directors of Arbinet Corporation (NasdaqGM: ARBX) for possible
breaches of fiduciary duty and other violations of state law in
connection with their attempt to sell the Company to Primus
Telecommunications Group, Inc. (OTCBB: PMUG). Under the terms of
the transaction, Arbinet common shareholders will receive shares of
Primus common stock in exchange for the Arbinet common stock they
own for a total transaction value of approximately $28 million.
Based on the companies' current capitalization, Arbinet
shareholders will be expected to own approximately 23% of the
combined company, and Primus shareholders will be expected to own
approximately 77% of the combined company upon the closing of the
transaction.
The investigation concerns whether the Arbinet Board of
Directors breached their fiduciary duties to Arbinet stockholders
by failing to adequately shop the Company before entering into this
transaction and whether Primus is underpaying for Arbinet shares.
For the most recent quarter, the Company had a book value of
approximately $6.06 per share which equates to a total book of
$33.21 million based on the total number of shares outstanding.
If you own common stock in Arbinet and wish to obtain additional
information, please contact Abe Shainberg, Esq. either via email at
as@ashainberglaw.com or by telephone at (212) 425-7286, or visit
http://www.ashainberglaw.com/arbinet-arbx.html.
Mr. Shainberg has expertise in prosecuting investor securities
litigation, is a certified and registered arbitrator and mediator
involving financial matters, and represents investors in various
matters nationwide.
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