BOSTON, April 27, 2015 /PRNewswire/ -- Block &
Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors
nationwide, has commenced an investigation into possible breaches
of fiduciary duty by the Board of Directors of iGATE Corporation
("iGATE" or the "Company") (NASDAQ: IGTE) concerning the
proposed acquisition of the Company by Cap Gemini S.A. ("Cap
Gemini"), in a transaction valued at approximately $4 billion. Under the terms of the
proposal, Cap Gemini will acquire each iGATE share for $48.00 in cash, a paltry premium of approximately
4.7%. Not surprisingly, because it was able to acquire iGATE
at such a substantial discount to its true value, shares of Cap
Gemini soared as high as $85.77 upon
the announcement of the proposed transaction, representing
double the premium received by iGATE
shareholders.
Market reports have stated that Cap Gemini has already secured
voting power of 54% to push the deal through. This support is
likely underpinned by the nearly 26% of the Company held by
Ashok Trivedi and Sunil Wadhwani, the co-founders and co-chairmen
of iGATE. The two co-founders will collect approximately
$1.0 billion of the total
$4 billion in merger consideration
expected to be paid in the proposed deal. The high analyst
price target on the investment website Yahoo! Finance was
$55.00, approximately 15% greater
than the offer price. The value of the Company's shares has
increased approximately 35% in just the past 4 months.
Block & Leviton's investigation seeks to determine whether
iGATE's Directors breached their fiduciary duties by failing to
maximize shareholder value in the proposed acquisition by Cap
Gemini and the fairness by which the iGATE Directors considered and
approved the transaction.
If you are an iGATE shareholder and have questions about your
legal rights, or if you have information relevant to this
investigation, please contact attorney Steven P. Harte, at (617) 398-5600 or email him
at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors
nationwide for violations of securities laws. The firm's
lawyers have collectively been prosecuting securities cases on
behalf of investors for over 60 years. This notice may
constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
steven@blockesq.com
(617) 398-5600
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SOURCE Block & Leviton LLP