A lawsuit on behalf of investors in NYSE:ADY shares was filed to block the proposed takeover of Feihe International Inc and current NYSE:ADY stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/17/2012 -- An investor in shares of Feihe International Inc (NYSE:ADY) filed a lawsuit against directors in effort to stop the proposed buyout of Feihe International at $7.40 per NYSE:ADY share.
Investors who purchased shares of the Feihe International Inc (NYSE:ADY) prior to October 3, 2012, and currently hold any of those NYSE:ADY 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:ADY investors arising out of the attempt to sell the company too cheaply via an unfair process. .
On October 3, 2012, Feihe International, Inc. (NYSE: ADY) announced that its Board of Directors has received a preliminary, non-binding proposal letter dated October 3, 2012 from Mr. You-Bin Leng, the Company's Chairman and Chief Executive Officer, and an affiliate of Morgan Stanley Private Equity Asia, the private equity arm of Morgan Stanley, to acquire all of the outstanding shares of common stock of the Company not currently owned by Mr. Leng (and possibly other rollover shareholders) in a going private transaction for $7.40 per share of common stock in cash, subject to certain conditions.
However, the plaintiff alleges that the $9.00 is grossly unfair to NYSE:ADY stockholders and undervalues the company. Indeed, at least one analyst has set the high target price for NYSE:ADY shares at $9.00 per share. Furthermore, so the plaintiff, Feihe International has recently reported excellent financial results. For instance, sales in fourth quarter 2011 increased 40% compared to fourth quarter 2010.
In addition, the plaintiff claims that the process is unfair to NYSE:ADY investors as well. Indeed, Feihe chairman and CEO You-Bin Leng owns more than 45 percent of the company.
Those who are current investors in Feihe International Inc (NYSE:ADY) and purchased their Feihe International 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