NEW YORK, July 2, 2009 (GLOBE NEWSWIRE) -- Levi & Korsinsky ("L&K") is investigating the Board of Directors of FCStone Group Inc. ("FCStone" or the "Company") (Nasdaq:FCSX) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to International Assets Holding Corp. (Nasdaq:IAAC) ("International Assets"). Under the terms of the agreement, FCStone shareholders will receive 0.2950 shares of International Assets stock for each share of FCStone they own. Based on the July 1, 2009 closing price of International Assets shares, the transaction is valued at $4.64 per share or approximately $130 million in the aggregate.
The investigation concerns whether the FCStone Board of Directors breached their fiduciary duties to FCStone shareholders given that (i) the Company's shares traded at $5.45 as recently as June 22, 2009 and over $19 per share in the fourth quarter of 2008; (ii) the Company has $202 million in cash (or $7.24 per share) against $58.8 million in debt and a book value in excess of $6.20 per share; and (iii) the FCStone Board of Directors agreed to a strict "no solicitation" provision and agreed to pay an excessive $4.9 million termination fee and expenses of up to $2 million which will all but ensure that no superior offer will ever be forthcoming.
The companies expect to consummate the transaction in the fourth quarter, subject to customary closing conditions, including all necessary regulatory and stockholder approvals.
If you own common stock in FCStone and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/fcsx1.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.