San Diego, CA -- (SBWIRE) -- 10/30/2013 -- An investor, who currently hold shares of Cole Real Estate Investments Inc (NYSE:COLE) filed a lawsuit in effort to halt the proposed takeover of Cole Real Estate Investments Inc by American Realty Capital Properties.

Investors who purchased shares of the Cole Real Estate Investments Inc (NYSE:COLE) and currently hold any of those NYSE:COLE 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:COLE stockholders arising out of the attempt to sell Cole Real Estate Investments Inc too cheaply via an unfair process to American Realty Capital Properties.

On October 23, 2013, American Realty Capital Properties, Inc. (NASDAQ: ARCP) and Cole Real Estate Investments Inc announced that they have signed an agreement to merge the two companies. The transaction is valued at $11.2 billion. Under the terms of the Merger Agreement, Cole Real Estate Investments Inc will merge with and into a wholly owned subsidiary of American Realty Capital Properties, Inc. Cole Real Estate Investments Inc stockholders may elect to receive 1.0929 shares of American Realty Capital Properties, Inc common stock (reflecting a fixed exchange ratio) or $13.82 cash for each share of Cole Real Estate Investments Inc common stock. In the event elections for payment in cash exceed 20% of Cole Real Estate Investments Inc's outstanding shares, such elections would be prorated American Realty Capital Properties, Inc’s offer is valued at $14.59 per Cole Real Estate Investments Inc common share based on the fixed exchange ratio of 1.0929 and American Realty Capital Properties, Inc's closing price of $13.35 on October 22, 2013.

However, the plaintiff claims that the offer is too low and undervalues Cole Real Estate Investments Inc. Indeed, at least one analyst has set the high target price for NYSE:COLE shares at $15.0 per share.

In addition, Cole Real Estate Investments’ performance improved recently. For instance, it reported that its annual Total Revenue rose from $22.60 million in 2009 to $471.33 million in 2012, and that its Net Loss of $7.82 million in 2009 turned into a Net income of $203.34 million in 2012. Shares of Cole Real Estate Investments Inc grew from $10.80 per share in June 2013 to $13.03 per share on Oct. 21, 2013.

The plaintiff says that the proposed merger offers an inadequate price for the Company's shareholders while at the same time guaranteeing substantial and unwarranted payments to certain defendants, including the Company's founder, Chairman the Board, and previous Chief Executive Officer and a longtime associate of Christopher H. Cole and the Company's current CEO.

In addition, the plaintiff claims that the defendants have exacerbated their breaches of fiduciary duty by agreeing to lock up the merger with unreasonable deal protection devices, such as a no-shop, a matching rights, and a $100 million termination fee provision, that prevent other bidders from making a competing offer for Cole Real Estate Investments Inc.

On Oct. 29, 2013, NYSE:COLE shares closed at $14.54 per share.

Those who are current investors in Cole Real Estate Investments Inc shares have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com