An investigation on behalf of investors of EarthLink Holdings Corp. (NASDAQ:ELNK) in connection with the proposed takeover was announced and NASDAQ:ELNK stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/14/2016 -- The acquisition of EarthLink Holdings Corp is under investigation over potential wrongdoing. The investigation was announced for investors, who currently hold NASDAQ:ELNK shares, concerning whether the takeover of EarthLink Holdings Corp. by Windstream Holdings, Inc for a value of approximately $5.92 per share is unfair.
Investors who purchased shares of EarthLink Holdings Corp. (NASDAQ:ELNK) and currently hold any of those NASDAQ:ELNK shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The investigation by a law firm concerns whether certain directors of EarthLink Holdings Corp. breached their fiduciary duties owed to NASDAQ:ELNK investors in connection with the proposed acquisition.
On November 7, 2016, Windstream Holdings, Inc. (Nasdaq: WIN) and EarthLink Holdings Corp. (NASDAQ:ELNK) announced that their boards of directors have approved a merger agreement under which Windstream Holdings, Inc. and EarthLink Holdings Corp. will merge in an all-stock transaction valued at approximately $1.1 billion, including debt. Under the terms of the agreement, EarthLink Holdings Corp. (NASDAQ:ELNK) shareholders will receive 0.818 shares of Windstream Holdings, Inc. common stock for each EarthLink Holdings Corp. (NASDAQ:ELNK) share owned. Based on a closing prive of $7.24 of NASDAQ:WIN shares on November 4, 2016, shareholders of EarthLink Holdings Corp. (NASDAQ:ELNK) will receive a value of approximately $5.92 per NASDAQ:ELNK shares.
However, given that at least one analyst has set the high target price for NASDAQ:ELNK shares at $10.00 per share and given that NASDAQ:ELNK shares traded in the open market as recently as August 2016 as high as $6.98 per share, the investigation concerns whether the offer is unfair to NASDAQ:ELNK stockholders. More specifically, the investigation concerns whether the EarthLink Holdings Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
On November 11, 2016, NASDAQ:ELNK shares closed at $5.09 per share.
Those who are current investors in EarthLink Holdings Corp. shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com