BOSTON, May 18, 2014 /PRNewswire/ -- Block &
Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors
nationwide, is investigating possible breaches of fiduciary duty by
the Board of Directors of DIRECTV (or the "Company") (Nasdaq
GS: DTV) concerning the proposed acquisition of the Company by
AT&T, Inc. ("AT&T") (NYSE: T). AT&T will pay
approximately $48.5 billion exclusive
of the Company's debt.
Under the terms of the proposed transaction, DIRECTV
shareholders will receive a mix of stock and cash with a combined
value of $95.00 per share, a paltry
10% premium to DIRECTV's closing share price on Friday, May 16, 2014 (the last day of trading
prior to the announcement of the merger). As noted by several
media outlets, the proposed transaction will face scrutiny by
federal regulators, who are already weighing Comcast's $45 billion bid for Time Warner Cable. For
the year ended 2013, DIRECTV had approximately $2.6 billion in cash on hand.
The acquisition follows a year of tremendous growth by DIRECTV,
which has seen its stock price skyrocket. For example, the
Company's share price hit a 52-week low of $57.05 on August 27,
2013 and rose as high as $89.46 on May 13,
2014. At least one analyst, according to the
investment website Yahoo! Finance, has placed a target price of
$100 per share, well above the
acquisition price.
Block & Leviton's investigation seeks to determine, among
other things, whether DIRECTV's directors breached their fiduciary
duties by failing to maximize shareholder value in the potential
acquisition and the process by which the directors considered and
approved the transaction. Block & Leviton is also
investigating potential aiding and abetting of fiduciary breaches
by AT&T.
If you are a DIRECTV 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 70 years. This notice may
constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
steven@blockesq.com
(617) 398-5600
SOURCE Block & Leviton LLP