SAN DIEGO, Nov. 14, 2011 (GLOBE NEWSWIRE) -- 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.