San Diego, CA -- (SBWIRE) -- 04/25/2012 -- An investor in NASDAQ:EBTX shares filed a lawsuit against directors of Encore Bancshares, Inc in effort to stop the proposed takeover of Encore Bancshares, Inc by Cadence Bancorp, LLC for $20.62 per NASDAQ:EBTX share.
Investors who purchased shares of Encore Bancshares, Inc (NASDAQ:EBTX) prior to March 6, 2012 and currently hold any of those NASDAQ:EBTX shares have certain options and should contact the Shareholders Foundation, Inc by email at mail(at)shareholdersfoundation.com or call +1 (858) 779 - 1554.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:EBTX stockholders arising out of the attempt to sell Encore Bancshares at an unfair price and an unfair process to Cadence Bancorp, LLC
On March 6, 2012, Cadence Bancorp, LLC announced that it has entered into an agreement to purchase Encore Bancshares, Inc. (NASDAQ: EBTX) in an all-cash transaction. Under terms of the proposed transaction, Cadence Bancorp, LLC will pay $20.62 per NASDAQ: EBTX share, or approximately $250 million for the approximately 12.1 million outstanding shares of Encore Bancshares, Inc., equating to a 2.4x price to tangible book value multiple.
Following the takeover news shares of Encore Bancshares, Inc (NASDAQ:EBTX) from $14.91 per share on Monday to $20.29 on Tuesday.
However, the plaintiff claims that the proposed transaction is designed to protect and advance the interests of certain directors at Encore Bancshares, Inc at the expense of Encore Bancshares, Inc and its public shareholders. The plaintiff says that the Chairman and CEO along with other members of Encore Bancshares’ board of directors will receive substantial personal compensation that they would not otherwise receive at this time absent of the transaction.
Those who are current investors in Encore Bancshares, Inc (NASDAQ:EBTX) and purchased their NASDAQ:EBTX 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