Del Monte Foods Company Shareholder Investigation by Briscoe Law Firm Concerning Acquisition by Private Investor Group
November 29 2010 - 11:24AM
Business Wire
The Briscoe Law Firm, PLLC, founded by a former state prosecutor
and enforcement attorney for the United States Securities and
Exchange Commission, and the law firm of Powers Taylor, LLP are
investigating potential legal claims against the Board of Directors
of Del Monte Foods Company (“Del Monte” or “DLM”) (NYSE: DLM)
related to the proposed acquisition of Del Monte by funds
affiliated with a group of private investment firms, including
Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners,
and Centerview Partners.
The definitive acquisition agreement, which was announced on
November 25, 2010, involves a transaction valued at approximately
$5.3 billion, including assumption of debt. Under the proposed
going private transaction, Del Monte shareholders will receive a
cash payment of $19.00 for each share of Del Monte/DLM common stock
they hold. Although the acquisition price reportedly represents an
approximate 40% premium over Del Monte’s prior three-month average
closing price, the price to shareholders is only 5% higher that the
closing price of Del Monte/DLM shares the day before the
acquisition announcement. Further, according to Yahoo! Finance, at
least one analyst has set a target price of $22.00 per share. Based
on this and other factors, the proposed transaction may not
adequately value Del Monte/DLM shares. The investigation relates to
possible breaches of fiduciary duty and other violations of state
law by the Board of Directors of Del Monte for approving this
transaction and whether Del Monte’s Board of Directors acted in the
shareholders’ best interests and properly shopped the deal.
If you currently own shares of Del Monte/DLM and would like
additional information regarding this investigation, or if you have
information regarding the allegations involved in this transaction,
please contact Patrick Powers at Powers Taylor, LLP, toll free
(877) 728-9607, via e-mail at patrick@powerstaylor.com, or Willie
Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or
via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or
fee to you.
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