A lawsuit was filed by investor in shares of Franklin Financial Corp (NASDAQ:FRNK in effort to stop the proposed takeover and NASDAQ:FRNK stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/08/2014 -- The Shareholders Foundation announces that an investor, who currently holds shares of Franklin Financial Corp (NASDAQ:FRNK), filed a lawsuit in effort to halt the proposed takeover of Franklin Financial Corp by TowneBank for a value of approximately $23.04 per share.
Investors who purchased shares of Franklin Financial Corp (NASDAQ:FRNK) and currently hold any of those NASDAQ:FRNK shares have certain options and should contact the Shareholders Foundation by email at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:FRNK stockholders by agreeing to sell Franklin Financial Corp too cheaply via an unfair process to TowneBank.
On July 15, 2014, TowneBank (NASDAQ: TOWN) and Franklin Financial Corporation (NASDAQ: FRNK) announced the signing of a definitive merger agreement pursuant to which TowneBank will acquire Franklin Financial Corp (NASDAQ:FRNK). Under the terms of the agreement, common shareholders of Franklin Financial Corp (NASDAQ:FRNK) will receive 1.40 shares of TowneBank common stock for each share of Franklin. This implies a deal value per NASDAQ:FRNK share of $23.04 or approximately $275 million based on TowneBank's closing stock price of $16.46 on Monday, July 14, 2014.
However, the plaintiff claims that the offer is too low and undervalues Franklin Financial Corporation. Indeed, NASDAQ:FRNK shares traded as recently as July 2, 2014, as high as $24.60 per share in the open market. In addition, Franklin Financial Corp reported that its Total Net Income rose from $1.43 million for the 12 months period that ended on Sept. 30, 2011 to $9.35 million for the 12 months period that ended on Sept. 30, 2013. Shares of Franklin Financial Corp (NASDAQ:FRNK) grew from $10.90 per share in November 2011 to as high as $24.60 per share on July 2, 2014. Furthermore, the plaintiff alleges that the process is also unfair to NASDAQ:FRNK stockholders.
On October 6, 2014, NASDAQ:FRNK shares closed at $18.80 per share.
Those who are current investors in Franklin Financial Corp shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego