NEW YORK, Oct. 22, 2009 (GLOBE NEWSWIRE) -- Attorney Advertising. The law firm of Harwood Feffer LLP is investigating possible breaches of fiduciary duty by the Board of Directors of Switch and Data Facilities Company, Inc. ("Switch and Data") (Nasdaq:SDXC) arising out of the proposed acquisition of Switch and Data by Equinix, Inc. ("Equinix") (Nasdaq:EQIX).
On Wednesday, October 21, 2009, Switch and Data announced it had agreed to be acquired by Equinix in a transaction valued at approximately $689 million in cash and stock, based on the close of trading on October 20, 2009. Under the terms of the agreement, Switch and Data stockholders will have the opportunity to elect to receive either (a) 0.19409 shares of Equinix stock or (b) $19.06 in cash for each share of Switch and Data stock. The overall consideration to be paid by Equinix in the acquisition will be 80% Equinix stock, 20% cash. In the event that holders of more than 80% of Switch and Data's stock elect to receive Equinix stock or holders of more than 20% of Switch and Data's stock elect to receive cash, the merger consideration will be pro-rated to achieve these proportions. Switch and Data's directors, executive officers and certain of its significant stockholders have agreed to vote shares representing 35% of Switch and Data's outstanding stock in favor of the transaction.
However, Switch and Data may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, Equinix may be underpaying for Switch and Data, thus unlawfully harming Switch and Data shareholders.
Harwood Feffer LLP has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in U.S. federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
If you own Switch and Data common stock and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
James G. Flynn, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10016
Phone Numbers: (877) 935-7400
(212) 935-7400
Email: jflynn@hfesq.com
Website: http://www.hfesq.com
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