SAN DIEGO, June 10, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor, who currently holds shares of SFX Entertainment Inc (Nasdaq:SFXE), filed a lawsuit against the proposed acquisition of SFX Entertainment Inc by an affiliate of Robert F.X. Sillerman, the Company’s Chairman and Chief Executive Officer, at $5.25 per share.
Investors, who purchased shares of SFX Entertainment Inc (Nasdaq:SFXE) prior to February 25, 2015, and currently hold any of those NASDAQ:SFXE shares, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:SFXE stockholders by agreeing to sell SFX Entertainment Inc too cheaply via an unfair process.
On February 25, 2015, SFX Entertainment Inc confirmed that it received a proposal from Robert F.X. Sillerman to negotiate with the Company a transaction whereby Robert F.X. Sillerman would acquire all of the outstanding shares of SFX Entertainment Inc that he does not already own at a price of $4.75 per share in cash. Then on May 26, 2015, SFX Entertainment, Inc. announced it has signed a merger agreement whereby an affiliate of Robert F.X. Sillerman will acquire all the outstanding common stock of SFX Entertainment, Inc. that he does not already own. Mr. Sillerman owns approximately 37.4 percent of the outstanding common stock of SFX Entertainment. Under the terms of the agreement, SFX stockholders will receive $5.25 in cash for each share of SFX common stock they hold.
However, the plaintiff claims that the proposed consideration NASDAQ:SFXE shareholders will receive is grossly inadequate and undervalues SFX Entertainment, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:SFXE shares at $7.00 per share and NASDAQ:SFXE shares traded as recently as June 2014 as high as $8.35 per share, respectively $11.51 per share in December 2013. In addition, the plaintiff claims that the process is also unfair to NASDAQ:SFXE stockholders. The plaintiff says that the defendants agreed to preclusive deal protection devices, such as a no-solicitation clause a matching rights, and a $15 million termination fee provision, that prevent other competing offers.
Those who currently hold SFX Entertainment Inc (Nasdaq:SFXE) shares have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.
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.