A lawsuit was filed for investors of FirstCity Financial Corporation (NASDAQ:FCFC) to stop the proposed takeover and NASDAQ:FCFC stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/06/2013 -- An investor in shares of FirstCity Financial Corporation (NASDAQ:FCFC) filed a lawsuit to halt the proposed takeover of FirstCity Financial Corporation by Värde Partners, Inc. at $10.00 per NASDAQ:FCFC share.
Investors who purchased shares of FirstCity Financial Corporation (NASDAQ:FCFC) prior to December 21, 2012, and currently hold any of those NASDAQ:FCFC shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff says that the defendants breached their fiduciary duties owed to NASDAQ:FCFC investors by agreeing to sell the company too cheaply via an unfair process.
On December 21, 2012, FirstCity Financial Corporation (NASDAQ: FCFC) and Värde Partners, Inc. announced that they have entered into a merger agreement under which certain funds managed by Värde Partners will acquire FirstCity Financial Corporation. Under the terms of the merger agreement, FirstCity Financial Corporation stockholders will receive $10.00 per share in cash for each share of FirstCity stock they own. The transaction is valued at $224.9 million, including debt.
However, the plaintiff claims that the $10-offer is too low and undervalues the company. Indeed, FirstCity’s financial performance improved lately. For instance, First City Financial Corporation reported that its annual Revenue rose from $45.20 million for 2008 to $74.32 million in 2011 and its Net Loss of $46.67 million in 2008 turned into a Net Income of $24.22 million in 2011. Furthermore, shares of FirstCity Financial Corporation (NASDAQ:FCFC) traded as recently as April 2012 as high as $10.00 per share.
Those who are current investors in FirstCity Financial Corporation (NASDAQ:FCFC), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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