A lawsuit was filed for investors in shares of CapitalSource, Inc. (NYSE:CSE) in effort to halt the proposed takeover and NYSE:CSE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/05/2013 -- An investor, who currently hold shares of CapitalSource, Inc. (NYSE:CSE), filed a lawsuit in effort to halt the proposed takeover of CapitalSource, Inc. by PacWest Bancorp for a value of approximately $11.64 per NYSE:CSE share.
Investors who purchased shares of CapitalSource, Inc. (NYSE:CSE) prior to July 22, 2013 , and currently hold any of those NYSE:CSE shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:CSE stockholders by agreeing to sell the company at an unfair price via an unfair process.
On July 22, 2013, PacWest Bancorp (Nasdaq:PACW) and CapitalSource Inc. (NYSE:CSE) 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 Agreement, CapitalSource shareholders will receive $2.47 in cash and 0.2837 shares of PacWest common stock for each share of CapitalSource 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 says that the offer is too low and undervalues the company. Indeed, following the takeover news NYSE:CSE shares jumped in the open market to as high as $12.25 per share on July 25, 2013, thus above the current offer. In addition CapitalSource’s financial performance improved lately. For instance, it reported that its Net Loss of $52.02 million in 2011 turned into a Net Income of $490.61 million in 2012. CSE shares grew from just over $1 in March 2009 to as high as $9.69 per share in March 2013.
Additionally, the plaintiff alleges that the merger is great for certain executive of CapitalSource who stand to make a collective $25 million on the deal and the defendants acted rather in their own self-interest that to maximize shareholder value or protect the interests of Cpaital Sourc 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.
On August 2, 2013, NYSE:CSE shares closed at $12.27 per share.
Those who are current investors in CapitalSource, Inc. (NYSE:CSE), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego