TEKELEC Investor Lawsuit Against Takeover Announced by Shareholders Foundation
November 14 2011 - 9:38AM
The Shareholders Foundation, Inc. announces that investors filed a
lawsuit in State Court for current investors in the TEKELEC (TKLC)
in effort to block the proposed going private offer of TEKELEC.
Those who currently are investors in shares of the TEKELEC
(TKLC) and purchased TKLC shares before November 7, 2011, should
contact the Shareholders Foundation, Inc. by e-mail at
mail@shareholdersfoundation.com or call +1 (858) 779-1554.
On Monday, Nov. 7, 2011, TEKELEC (TKLC) announced that it has
entered into an agreement to be acquired by a consortium led by
Siris Capital Group, LLC and including affiliates of The ComVest
Group, funds and accounts managed by GSO Capital Partners LP,
Sankaty Advisors LLC, ZelnickMedia and other Siris limited partners
and affiliates. The transaction is valued at approximately $780
million. Under the terms of the proposed transaction, all
outstanding shares of TEKELEC's common stock will be acquired for
$11.00 per share in cash. TEKELEC said the $11 offer represents an
11% premium over the closing price on November 4, 2011, and a 38%
premium over the 30 day trading average closing price of TEKELEC
common stock.
However, the plaintiffs allege the $11 offer undervalues the
company. The plaintiffs say that in October 2011, TKLC shares
climbed from a close of $5.70 on Oct. 3rd to a high of $10.36 on
October 27th, an increase of approximately 80% in the span of one
month. In fact, shares of TEKELEC (TKLC) traded as early as
February at $12.04 and January at $13.28 per share, leaving certain
TKLC stockholders with no premium, but asking them to hand over
their TKLC stocks at a discount. Additionally, at least one analyst
has set the high target price for TKLC stocks at $16 per share.
Further the plaintiffs claim that the defendants further
breached their fiduciary duties by agreeing to preclusive deal
protections devices, such as a no-solicitation, a matching right,
and a non-mutual $15 million termination fee provision, which
further diminish the chances of obtaining maximum value for the
company's shareholders by collectively precluding any competing
offers for TEKELEC.
Those who currently are investors in shares of the TEKELEC
(TKLC) and purchased their shares before the announcement should
contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio
legal monitoring and settlement claim filing service, which does
research related to shareholder issues and informs investors of
securities class actions, settlements, judgments, and other legal
related news to the stock/financial market. The Shareholders
Foundation, Inc. is not a law firm. The information is provided as
a public service. It is not intended as legal advice and should not
be relied upon.
CONTACT: Shareholders Foundation, Inc.
Trevor Allen
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
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