San Diego, CA -- (SBWIRE) -- 04/03/2012 -- An investor in NYSE:ABVT shares filed a lawsuit against directors of AboveNet, Inc. in effort to block the proposed takeover of AboveNet, Inc. by Zayo Group, LLC for $84 per NYSE:ABVT share.
Investors who purchased shares of AboveNet, Inc. (NYSE:ABVT) prior to March 19, 2012 and currently hold (some of) those NYSE:ABVT shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:ABVT stockholders arising out of the attempt to sell AboveNet at an unfair price via an unfair process.
On Monday, March 19, 2012, AboveNet, Inc. (NYSE: ABVT) and Zayo Group, LLC announced that their boards of directors have approved an agreement under which Zayo Group, LLC will acquire AboveNet for approximately $2.2 billion. Under the terms of the proposed transaction, each share of AboveNet common stock issued and outstanding immediately prior to the transaction will be entitled to receive $84.00 per share in cash.
However, the plaintiff alleges that the $84offer is unfair to NYSE:ABVT stockholders and undervalues the company. In fact, following the takeover announcement shares of AboveNet, Inc. (NYSE:ABVT) jumped from $74.25 per share on Friday to as high as $84.34 per share during Monday, March 19, 2012, thus above the current offer. Furthermore at least one analyst has set the high target price for NYSE:ABVT shares at $86 per share. Additionally, AboveNet’s financial performance increased lately. In fact, AboveNet, Inc. (NYSE:ABVT) reported that its annual Revenue rose from $319million for 2008 to $472.50million in 2011 and its Net Income increased from $42.30million in ’08 to $72.70million in 2011.
The plaintiff also alleges that the process is unfair to NYSE:ABVT investors, since defendants agreed to the detriment to AboveNet shareholders to certain onerous and preclusive deal protection devices, such as a limited 30-day window go-shop and a $45million termination fee provision, that operate conjunctively to make the proposed transaction a fait accompli and all but ensure that the proposed transaction is successful and no competing offers will emerge for the company.
Shares of AboveNet, Inc. (NYSE: ABVT) closed on Monday, April 2, 2012, at $82.87 per share, thus above the current offer.
Those who are current investors in AboveNet, Inc. (NYSE:ABVT) and purchased their NYSE:ABVT shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego