SAN DIEGO, and WARREN,
Mich., March 8, 2013
/PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo
LLP are investigating the acquisition of Asset Acceptance Capital
Corp. (NASDAQ: AACC) by Encore Capital Group, Inc. (NASDAQ: ECPG).
On March 6, 2013, the two companies
jointly announced the signing of a merger agreement whereby Encore
Capital will acquire Asset Acceptance for $6.50 per share. Asset Acceptance
shareholders can elect to receive their consideration in cash or in
Encore stock or a combination of cash and Encore stock.
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Asset Acceptance Shareholders Might Not Receive Maximum
Value for Their Stock
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Asset Acceptance is undertaking a fair process to
obtain maximum value and adequately compensate its shareholders in
the merger or whether they are seeking to benefit themselves.
The $6.50 merger consideration
represents a premium of only 12.85% based on Asset Acceptance's
closing price on March 5, 2013.
Moreover, the offer price is substantially below the $8.00 target price set by First Analysis and the
$7.00 target price maintained by
Sidoti and Co. since September 11,
2012. Further, the company's stock has traded above the offer
price on numerous occasions during the past year, trading as high
as $6.70 as recently as November 6, 2012.
Is the Acquisition Best for Asset Acceptance and Its
Shareholders?
Asset Acceptance also released its fourth quarter and full year
2012 earnings on March 6, 2013,
reflecting increases in cash collections and adjusted EBITDA over
the same periods in 2011. Specifically, Asset Acceptance
reported increased cash collections to $85.7
million and $367.8 million for
the fourth quarter and full year respectively. Further,
adjusted EBITDA increased to $40.7
million for the quarter and $183.2
million for the year. In announcing these results,
Rion Needs, President and CEO of
Asset Acceptance commented, "We continue to show progress in key
performance metrics and have ambitious goals to further improve
efficiency ... we believe we remain well positioned to reach our
operational and profitability goals on 2013 and beyond."
Given these facts, the firm is examining the board of directors'
decision to sell Asset Acceptance now rather than allow
shareholders to continue to participate in the company's continued
success and future growth prospects.
Asset Acceptance shareholders have the option to file a class
action lawsuit to secure the best possible price for shareholders
and the disclosure of material information so shareholders can vote
on the transaction in an informed manner. Asset Acceptance
shareholders interested in information about their rights and
potential remedies can contact 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 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. For more information, please go to
http://www.robbinsarroyo.com.
Press release link:
http://www.robbinsarroyo.com/shareholders-rights-blog/asset-acceptance-capital-corp/
Attorney Advertising.Past results do not guarantee a similar
outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP