A lawsuit was filed for investors in shares of Eastern Insurance Holdings Inc (NASDAQ:EIHI) in effort to halt the proposed takeover and NASDAQ:EIHI stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/05/2013 -- An investor, who currently hold shares of Eastern Insurance Holdings Inc (NASDAQ:EIHI) filed a lawsuit in effort to halt the proposed takeover of Eastern Insurance Holdings Inc by ProAssurance Corporation for $24.50 per share.
Investors who purchased shares of the Eastern Insurance Holdings Inc (NASDAQ:EIHI) and currently hold any of those NASDAQ:EIHI 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 NASDAQ:EIHI stockholders arising out of the attempt to sell Eastern Insurance Holdings Inc too cheaply via an unfair process to ProAssurance Corporation
On Sept. 24, 2013, ProAssurance Corporation and Eastern Insurance Holdings, Inc. announced that Eastern Insurance Holdings will merge with a newly formed subsidiary of ProAssurance Corporation in an all-cash transaction that values Eastern Insurance Holdings at $24.50 per share. The transaction, with an aggregate value of approximately $205 million, is expected to close by January 1, 2014.
However, the plaintiff claims that the offer is too low and undervalues Eastern Insurance Holdings, Inc. Eastern Insurance Holdings’ financial performance improved. For instance, it reported that its annual Total Revenue rose from $117.62 million in 2010 to $168.07 million in 2012 and that its Net Loss of $9.19 million in 2010 turned into a Net Income of $10.35 million.
Shares of Eastern Insurance Holdings Inc (NASDAQ:EIHI) grew from $5.726 per share in March 2009 to as high as $21.96 per share in August 2013.
On November 4, 2013, NASDAQ:EIHI shares closed at $24.46 per share.
Those who are current investors in Eastern Insurance Holdings Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com