SAN DIEGO and SOUTHFIELD, Mich., Dec.
31, 2014 /PRNewswire/ -- Shareholder rights attorneys
at Robbins Arroyo LLP are investigating the proposed acquisition of
Meadowbrook Insurance Group, Inc. (NYSE: MIG) by Fosun
International Limited (HKEx: 00656). On December 30, 2014, the two companies announced
the signing of a definitive merger agreement pursuant to which
Meadowbrook shareholders will receive $8.65 for each share of Meadowbrook common
stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/meadowbrook-insurance-group-inc
Is the Proposed Acquisition Best for Meadowbrook and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Meadowbrook is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $8.65
merger consideration represents a premium of only 21% based on
Meadowbrook's closing price on December 30,
2014. This premium is significantly below the average
one-day premium of nearly 30% for comparable transactions within
the past five years.
Further, on November 5, 2014,
Meadowbrook released its earnings results for the nine months ended
September 30, 2014, reporting strong
results. Specifically, Meadowbrook reported net income of
$21.1 million, or $0.42 per diluted share, for the nine months
ended September 30, 2014, compared to
a net loss of $100.5 million, or
$2.01 per diluted share, for the same
period in 2013. In addition, Meadowbrook reported net
operating income of $15.1 million, or
$0.30 per diluted share, for the nine
months ended September 30, 2014,
compared to net operating loss of $103.1
million, or $2.07 per diluted
share, for the nine months ended September
30, 2013. Meadowbrook's reported sales beat Bloomberg
consensus analyst estimates during each of the last four quarters,
further underscoring the company's recent strong
performance.
Commenting on the results, Robert S.
Cubbin, President and Chief Executive Officer of
Meadowbrook, stated: "We are pleased with our progress and
continued stabilization in our overall loss reserves. We have
continued to exercise discipline in writing only business that we
believe meets our profitability targets… Our results reflect the
positive impact of our actions to improve our underwriting
performance and drive overall profitability as reflected by the
improvement in our loss ratio. We remain focused on improving
our risk profile, stabilizing our loss reserves and strengthening
our capital position, while at the same time identifying
opportunities to reduce our expense ratio going forward."
In light of these facts, Robbins Arroyo LLP is examining
Meadowbrook's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Meadowbrook shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
Meadowbrook shareholders interested in information about their
rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP