San Diego, CA -- (SBWIRE) -- 04/02/2013 -- An investor in NYSE:GDI shares filed a lawsuit against directors in effort to block to the proposed takeover of Gardner Denver, Inc. by Kravis Roberts & Co. L.P. at $76.00 per NYSE:GDI share.
Investors who purchased shares of the Gardner Denver, Inc. (NYSE:GDI) and currently hold any of those NYSE:GDI 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:GDI stockholders by agreeing to sell the company too cheaply via an unfair process.
On March 8, 2103, Gardner Denver, Inc. and Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates) announced that the companies have entered into a merger agreement in a transaction valued at approximately $3.9 billion, including the assumption of debt. Under the terms of the merger agreement, Kravis Roberts & Co. L.P. will acquire all of the outstanding shares of Gardner Denver common stock for $76 per share in cash. Gardner Denver said that the offer represents a premium of approximately 39 percent to Gardner Denver's share price on October 24, 2012, the day before the Company confirmed that it had begun to explore strategic alternatives.
However, the plaintiff claims that the $76-offer is too low and undervalues the company. Indeed, at least one analyst has set the high target price for NYSE:GDI shares at $80.00 per shares and that NYSE:GDI shares traded in July 2011 as high as $91.50 per share.
In addition, the plaintiff alleges that Gardner Denver's growth potential is so strong that it makes the $76-offer inadequate. Indeed, Gardner Denver’s financial performance improved recently. In fact, it) reported that its annual Total Revenue rose from over $1.77 billion in 2009 to over $2.37 billion in 2011 and its Net Loss of $165.19 million in 2009 turned into a Net Income of $277.56 million in 2011.
Shares of Gardner Denver, Inc. (NYSE:GDI) grew from as low as $18.10 per share in March 2009 to as high as $91.50 per share in July 2011.
Those who are current investors in Gardner Denver, Inc. (NYSE:GDI) and purchased their Gardner Denver 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