Robbins Arroyo LLP: Acquisition of Electro Rent Corp. (ELRC) by Platinum Equity LLC May Not Be in Shareholders' Best Interests
May 31 2016 - 3:05PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Electro Rent Corp.
(NASDAQ: ELRC) by Platinum Equity LLC. On May 31, 2016, the two
companies announced the signing of a definitive merger agreement
pursuant to which Platinum Equity will acquire Electro Rent. Under
the terms of the agreement, Electro Rent shareholders will receive
$13.12 in cash for each share of Electro Rent common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/electro-rent-corp
Is the Proposed Acquisition Best for Electro Rent and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Electro Rent is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $13.12 merger consideration is
significantly below the target price of $15.00 set by an analyst at
Sidoti & Company LLC on April 8, 2016. In the last three years,
Electro Rent traded as high as $21.58 on November 29, 2013, and
most recently traded above the merger consideration – at $13.20 –
on February 27, 2015.
In light of these facts, Robbins Arroyo LLP is examining Electro
Rent'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.
Electro Rent 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.
Electro Rent 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160531006381/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
Electro Rent Corp. (MM) (NASDAQ:ELRC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Electro Rent Corp. (MM) (NASDAQ:ELRC)
Historical Stock Chart
From Jul 2023 to Jul 2024