MONSEY, N.Y., Oct. 18, 2023 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed sale of Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (“CNSL”) to Searchlight Capital Partners, L.P. (“Searchlight”) and British Columbia Investment Management Corporation (“BCI”) for $4.70 per share in cash.
If you remain a CNSL shareholder and have concerns about the fairness of the price, you may contact our firm at the following link to discuss your legal rights at no charge:
https://wohlfruchter.com/cases/consolidated-communications-holdings-inc/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On October 16, 2023, CNSL announced that it had agreed to be sold to Searchlight and BCI for $4.70 per share in cash. Searchlight currently owns approximately 34% of CNSL’s outstanding shares of common stock, as well as 100% of CNSL’s outstanding Series A perpetual preferred stock, which raises a red flag concerning whether Searchlight exercised undue influence over the sales process.
The proposed sale was approved by a special committee of purportedly independent and disinterested directors of the Board of Directors (“Special Committee”) formed to evaluate and consider the proposal and other potential strategic alternatives.
“We are investigating whether the CNSL Board of Directors acted in the best interests of CNSL shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the price agreed upon is fair to CNSL shareholders, whether all material information regarding the transaction has been fully disclosed, and whether the members of the Special Committee were truly disinterested and independent.”
Notably, the deal price is below CNSL’s 52-week high of $5.55 per share, which indicates an opportunistic purchase.
Further, shareholder reaction on Seeking Alpha has been negative. For example, a CNSL shareholder with the screen name Jabler79 asserted that the deal “[d]ramatically undervalues the company considering the prospects.” Likewise, a shareholder with the screen name Iron Eagle opined that “I also agree they are hosing everyone on the $4.70 price.”
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
