Robbins Umeda LLP Announces an Investigation of GeoEye, Inc.
July 23 2012 - 8:11PM
Business Wire
Shareholder rights firm Robbins Umeda LLP has commenced an
investigation into possible breaches of fiduciary duty and other
violations of the law by members of the board of directors of
GeoEye, Inc. (NASDAQ: GEOY) in connection with their efforts to
sell the company to DigitalGlobe, Inc. (NYSE: DGI). Concerned
shareholders who would like more information about their rights and
potential remedies can contact attorney Gregory E. Del Gaizo at
800-350-6003, info@robbinsumeda.com, or via the shareholder
information form on the firm's website.
On July 23, 2012, GeoEye announced that it had entered into a
definitive merger agreement to be acquired by DigitalGlobe.
According to the terms of the deal, DigitalGlobe will acquire all
of the outstanding shares of GeoEye through a stock and cash
transaction valued at approximately $20.27 per GeoEye share.
Pursuant to the agreement, GeoEye shareholders will have the right
to elect to receive either 1.137 shares of DigitalGlobe common
stock and $4.10 per share in cash, 100% of the consideration in
cash, or 100% of the consideration in stock, for each share of the
company they own. The transaction is expected to close by the first
quarter of 2013.
Robbins Umeda LLP's investigation focuses on whether the board
of directors at GeoEye is undertaking a fair process to obtain
maximum value and adequately compensate shareholders. At least
three market analysts have released target prices for GeoEye that
value the company's stock between $23 and $28 per share,
considerably higher than the value currently being offered by
DigitalGlobe as a part of the proposed transaction. Additionally,
shares of GeoEye's common stock have traded and closed above the
current offer price as recently as May 25, 2012, closing on that
day at $20.39 per share.
Furthermore, on May 3, 2012, GeoEye reported financial results
that exceeded analyst projections and represented substantial
increases over 2011 figures. Specifically, the company reported
revenue of $89.28 million for the first quarter of 2012, beating
consensus estimates of only $85.84 million. Additionally, GeoEye
reported earnings per share of $0.58, which beat analyst
projections of only $0.49 by $16.23%. Matt O'Connell, the Chief
Executive Officer of GeoEye, also expressed optimism about the
company's continuing growth prospects, stating: "Results for the
first quarter were above our expectations, as our core business
remained strong, and our international business continued to
exhibit solid growth…. We renewed a number of large international
affiliate contracts, which gives us excellent visibility into our
2012 revenues."
Given these impressive financial results, recent target prices,
and future prospects, Robbins Umeda LLP is examining the board's
decision to sell GeoEye rather than allow shareholders to continue
to participate in the company's continued success and future growth
prospects.
Robbins Umeda LLP attorneys highlight that GeoEye shareholders
have the option to file a class action lawsuit against the company
to secure the best possible price for the company's shareholders
and the disclosure of material information to shareholders so they
can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The 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. For more information,
please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/geoeye-inc/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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