Robbins Umeda LLP Announces an Investigation of AboveNet, Inc.
20 Marzo 2012 - 7:30PM
Business Wire
Shareholder rights firm Robbins Umeda LLP has commenced an
investigation into possible breaches of fiduciary duty and other
violations of the law by members of the board of directors of
AboveNet, Inc. (NYSE: ABVT) in connection with their efforts to
sell the company to Zayo Group, LLC. Concerned shareholders who
would like more information about their rights and potential
remedies can contact attorney Gregory E. Del Gaizo at (800)
350-6003, info@robbinsumeda.com, or via the shareholder information
form on the firm's website.
On March 19, 2012, AboveNet announced that it had entered into a
definitive merger agreement to be acquired by Zayo. According to
the terms of the deal, Zayo will acquire all outstanding shares of
the company through an all-cash transaction. Pursuant to the
agreement, AboveNet shareholders will receive $84.00 for each share
of the company they own. The transaction is expected to close in
mid-2012.
Robbins Umeda LLP's investigation focuses on whether AboveNet's
board is undertaking a fair process to obtain maximum value and
adequately compensate shareholders in light of the company's recent
financial results. Specifically, on February 28, 2012, AboveNet
reported financial results for the fourth quarter of fiscal year
2011 that exceeded analyst expectations. The company reported
diluted earnings per share of $0.90 on revenue of $121.6 million,
while analysts polled by Bloomberg had only been expecting diluted
earnings per share of $0.62 on revenue of $120.7 million.
Furthermore, at least two leading market analysts have released
target prices for AboveNet that value the company's stock between
$85.00 and $86.00 per share, considerably higher than the value
currently being offered by Zayo as a part of the proposed
transaction.
Notably, the transaction represents only a 13.13% premium for
shareholders, based on AboveNet's March 16, 2012 closing price.
According to data from Bloomberg, in 88 transactions comparable to
the AboveNet acquisition over the past 3 years, buyers have paid an
average premium of over 49.97% and an average EBITDA multiple of
23.90. These figures are far in excess of the 13.13% premium and
11.10 EBITDA multiple agreed to by the board for AboveNet
shareholders.
Robbins Umeda attorneys highlight that AboveNet shareholders
have the option to file a class action lawsuit against the company
to secure the best possible price for the company's shareholders
and the disclosure of material information to shareholders so they
can vote on the transaction in an informed manner.
Robbins Umeda 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.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/abovenet/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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