San Diego, CA -- (SBWIRE) -- 05/07/2012 -- An investigation on behalf of investors in NYSE:DGI shares concerning whether the offer by GeoEye, Inc. to take over DigitalGlobe Inc at $17.00 per share and the takeover process are unfair to investors in NYSE:DGI. was announced.
Investors who purchased shares of DigitalGlobe Inc (NYSE:DGI) prior to May 4, 2012 and currently hold any of those NYSE:DGI shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigations by law firms concern whether certain officers and directors breached their fiduciary duties owed to NYSE:DGI investors in connection with the proposed acquisition.
On May 4, 2012, DigitalGlobe, Inc. (NYSE: DGI) confirmed that it has received an unsolicited proposal from GeoEye, Inc. (NASDAQ: GEOY) to acquire DigitalGlobe, Inc for $17.00 per share in a combination of cash and stock. Under the proposed terms, DigitalGlobe shareholders would receive $17.00 per share in total consideration payable as $8.50 per share in cash and $8.50 in GeoEye, Inc.stock. Alternatively, GeoEye, Inc. would consider restructuring their proposal to increase the cash consideration up to 100% of the purchase price or, in the alternative, reducing the cash consideration and increasing the stock portion of their offer.
Following the takeover news shares of DigitalGlobe Inc (NYSE:DGI) jumped from $13.51 on Thursday to $16.61 per share during Friday, May 4, 2012.
However, shares of DigitalGlobe Inc (NYSE:DGI) traded as early as February 14, 2012 as high as $17.27 per share and in July 2011 as high as $26.78 per share. In addition, at least one analyst has set the high target price for NYSE:DGI shares at $36 per share. Thus recent as well as historic and estimated prices are all well above the current offer.
Therefore the investigation for NYSE:DGI. investors concerns whether the proposed transaction is unfair to DigitalGlobe stockholders. Specifically, the investigation focuses on whether the DigitalGlobe Board of Directors undertakes an adequate sales process, adequately shops the company before entering into the transaction, maximizes shareholder value by negotiating the best price, and acts in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in DigitalGlobe Inc (NYSE:DGI) and purchased their DigitalGlobe Inc 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