BOULDER, Colo., June 23, 2009 (GLOBE NEWSWIRE) -- Advertising Material -- The Shuman Law Firm today announced that it is investigating potential improprieties in connection with the proposed acquisition of Specialty Underwriters Alliance, Inc. ("SUAI" or the "Company") (Nasdaq:SUAI).
On June 22, 2009, SUAI announced its intent to sell the Company to Tower Group, Inc. ("Tower"), in a transaction currently valued at approximately $107 million. Under the terms of the agreement, SUAI shareholders would receive 0.28 shares of Tower common stock which values SUAI at $6.72 per share based on Friday's closing stock price for Tower of $24.00.
The proposed deal potentially ends the effort by Hallmark Financial Services, Inc. ("Hallmark") to purchase the Company. Nearly a year ago Hallmark made a conditional offer to buy SUAI for $6.50 a share. At that time, Hallmark was SUAI's largest shareholder with a nearly 10% stake in the Company. SUAI has rebuffed Hallmark's advances and was largely successful in fighting off a recent proxy battle.
If Tower's stock price during a defined period leading up to the merger falls below $20.00, SUAI will have the right, for a limited period, to terminate the agreement, unless Tower elects to add Tower shares to provide SUAI shareholders with a value per share of $6.51. This provision appears to protect Tower shareholders at the expense of SUAI shareholders and potentially provides for a meager $.01 per share increase over the offer made by Hallmark nearly a year ago.
If you currently own SUAI common stock and would like a free consultation concerning your rights and interests, please contact Kip Shuman, Esq. or Rusty Glenn, Esq. toll-free at 866-974-8626 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and shareholder derivative litigation.