SAN DIEGO, July 31, 2013 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor who currently holds CapitalSource, Inc. (CSE) shares filed a lawsuit to halt the proposed takeover of CapitalSource, Inc. by PacWest Bancorp for a value of approximately $11.64 per CSE share.
Investors who purchased shares of CapitalSource, Inc. (CSE) prior to July 22, 2013 and currently hold any of those CSE shares, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
On July 22, 2013, PacWest Bancorp and CapitalSource Inc. announced the signing of an agreement and plan of merger whereby PacWest and CapitalSource will merge in a transaction valued at approximately $2.3 billion. Under the terms of the proposed transaction, CapitalSource Inc shareholders will receive $2.47 in cash and 0.2837 shares of PacWest common stock for each share of CapitalSource Inc common stock. The total value of the CSE per share merger consideration, based on the closing price of PacWest shares on July 19, 2013 of $32.32, is $11.64.
However, the plaintiff alleges that the defendants breached their fiduciary duties owed to CSE stockholders by agreeing to sell the company at an unfair price via an unfair process. The plaintiff says that the offer is too low and undervalues the company. Indeed, following the takeover news CSE shares jumped in the open market to as high as $12.25 per share on July 25, 2013, thus above the current offer.
Additionally, the plaintiff claims that the merger only beneficial to certain executives of CapitalSource, Inc. who stand to make a collective $25 million on the deal and the defendants acted rather in their own self-interest than to maximize shareholder value or protect the interests of CapitalSource, Inc. shareholders. Furthermore, the plaintiff says that the defendants agreed to deal protection devices, such as a no-shop, an information rights, and a hefty termination provision.
Those who currently are investors in CapitalSource, Inc. shares and purchased any of those CSE shares prior to the announcement have certain options and should contact the Shareholders Foundation.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.