MILWAUKEE, Nov. 3, 2014 (GLOBE NEWSWIRE) -- We are investigating the Board of Directors of Covance for possible breaches of fiduciary duty and other violations of state law in connection with the sale of Covance to LabCorp.
Click here to learn how to join the action: http://www.ademilaw.com/case/covance or call Guri Ademi toll-free at 866-264-3995. There is no cost or obligation to you.
Covance's long-term financial outlook is very positive and yet shareholders will receive only $75.76 in cash and 0.2686 LabCorp shares for each Covance share they own or approximately $105.12 per share. LabCorp is well aware of Covance's' improving financial metrics and is purchasing Covance at a substantial discount. The merger agreement unreasonably limits prospective bids by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should Covance receive and accept a superior bid. Covance's insiders and their affiliates own significant stock, and will receive millions of dollars as part of change of control arrangements. These insiders can unduly influence a sale of Covance not necessarily in the best interests of non-insider shareholders. In light of these facts, our investigation centers on the conduct of Covance's Board of Directors, who have unanimously approved the transaction, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Covance given its current financial condition and prospects.
If you own shares of Covance and wish to obtain additional information, please contact Guri Ademi either at gademi@ademilaw.com or toll-free: 866-264-3995, http://www.ademilaw.com/case/covance.
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