Robbins Umeda LLP Announces an Investigation of the Acquisition of PMA Capital Corp. by Old Republic International Corporation
June 10 2010 - 4:04PM
Business Wire
Robbins Umeda LLP has commenced an investigation into possible
breaches of fiduciary duty and other violations of state law by
members of the Board of Directors of PMA Capital Corporation ("PMA
Capital" or the "Company") (NASDAQ: PMACA) in connection with their
actions in causing PMA Capital to enter into a merger agreement to
be acquired by Old Republic International Corporation ("Old
Republic") (NYSE: ORI). If the transaction is completed, PMA
Capital shareholders will receive 0.55 shares of Old Republic
common stock for each share of PMA Capital they hold. This exchange
ratio will result in PMA Capital shareholders receiving
approximately $7.10 worth of Old Republic stock for each share of
PMA Capital they own. Depending on the price of Old Republic's
common stock preceding the closing of the merger, the exchange
ratio may be adjusted upwards or downwards, but will not exceed
0.60 or be less than 0.50. If approved, the transaction is expected
to be completed during the third quarter of 2010.
Robbins Umeda LLP's investigation concerns whether the Board of
Directors of PMA Capital undertook a fair process to obtain fair
consideration for all shareholders of PMA Capital. The Company
recently reported that its earnings for the first quarter of 2010
were $0.24 per share, beating analyst estimates of around $0.21 per
share. One analyst also gave the Company a "buy" rating and a price
target of $11.00 per share. Other analysts have valued the
Company's stock at around $8.00 per share. In the proposed
acquisition, the Company is valued well below these targets.
If you are a shareholder of PMA Capital and would like more
information about your rights as a shareholder, please contact
attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at
inquiry@robbinsumeda.com.
Robbins Umeda LLP is a California-based law firm with
significant experience representing investors in merger-related
shareholder class actions, shareholder derivative actions, and
securities fraud class actions. For more information about the
firm, please go to http://www.robbinsumeda.com.
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