WILMINGTON, Del., Dec. 16, 2014 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating potential breach of fiduciary duty claims against the Board of Directors of PetSmart, Inc. ("PetSmart" or the "Company") relating to the sale of the Company to a consortium of investors led by BC Partners, Inc. ("BC Partners"). On December 14, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which BC Partners will acquire PetSmart in a leveraged buyout worth $8.7 billion. As a result of the merger, PetSmart shareholders are only anticipated to receive $83.00 per share in cash in exchange for each share of PetSmart.
Our investigation so far has revealed that the consideration PetSmart shareholders are expected to receive is inadequate -- only a meager 5.5% premium based on PetSmart's December 12, 2014 trading price. Our investigation also has uncovered that the process leading up to the merger announcement appears to have significant conflicts of interest. For instance, Longview Asset Management, PetSmart's second largest shareholder, will vote its 9% stake in favor of the deal but will simultaneously "participate in the [investor] consortium only with respect to approximately one-third of its holdings."
As a result of this news, Andrews & Springer is investigating whether PetSmart directors are breaching their fiduciary duties by failing to adequately shop the company and maximize shareholder value.
If you own shares of PetSmart and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/PETM or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice constitutes Attorney Advertising.