NEW YORK, Dec. 8, 2015 /PRNewswire/ -- The proposed
merger of American Residential Properties, Inc. ("ARPI" or the
"Company") and American Homes 4 Rent ("AMH") is being investigated
by WeissLaw LLP for possible breaches of fiduciary duty and other
violations of law by the Board of Directors of ARPI. On
December 3, 2015, the Company
announced that the Board approved a definitive agreement to merge
with AMH in a tax-free transaction valued at approximately
$1.5 billion. Under the terms
of the agreement, shareholders of ARPI will receive 1.135 common
shares or limited partnership units of AMH for each ARPI share they
own; representing a consideration of $19.01 per share.
WeissLaw is investigating whether ARPI's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, the offer price represents a mere 7 % premium over ARPI's
December 2 trading price of
$17.74, which is substantially lower
than the recommended 20%-30% range. Additionally, at least
one analyst set a target price of $23.00 per share, or approximately $4.00 above the offer price. Further, upon
completion of the transaction, ARPI shareholders will own a mere
12.6% of the newly formed company.
Given these facts, WeissLaw is investigating the Board of
Directors' decision to sell ARPI and whether ARPI shareholders will
obtain their fair proportionate share of the Company's continued
success and future growth prospects. If you own ARPI shares
and would like more information about your rights or our
investigation, please contact Joshua
Rubin either by telephone at (888) 593-4771 or by
email at stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the form
on our website,
http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP