A lawsuit was filed for investors in NASDAQ:KNOL shares in effort to block the proposed takeover of Knology, Inc. and NASDAQ:KNOL stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/13/2012 -- An investor in NASDAQ:KNOL shares filed a lawsuit against directors of Knology, Inc. to stop the proposed takeover of Knology, Inc. by WOW! Internet, Cable & Phone at $19.75 per NASDAQ:KNOL share.
Investors who purchased shares of Knology, Inc. (NASDAQ:KNOL) prior to April 18, 2012 and currently hold any of those NASDAQ:KNOL 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 NASDAQ:KNOL investors arising out of the attempt to sell the company too cheaply via an unfair process.
On April 18, 2012, Knology, Inc. and WOW! Internet, Cable & Phone announced a merger agreement under which a subsidiary of WOW! Internet, Cable & Phone will acquire Knology, Inc. in an all-cash transaction. Under the terms of the proposed transaction, WOW! Internet, Cable & Phone will acquire all of the outstanding shares of Knology for $19.75 per share in cash or a total transaction value of approximately $1.5 billion.
However, the plaintiff says that the $19.75offer is unfair to NASDAQ:KNOL investors and undervalues the company given its recent stron performance as well as its future growth prospects. In fact, Knology performed well for its investors in the past. In fact, its annual Revenue increased from $402.23million in 2008 to $498.48million in 2011 and its Net Loss of $12.12million in 2008 turned into a Net Income of $48.61million in 2011. In addition the company’s own financial advisor valued the company as high as $22.25 per share, so the lawsuit.
Furthermore the plaintiff alleges that Knology, Inc is selling itself through a tainted process that is unfair to NASDAQ:KNOL stockholders. The plaintiff claims that the defendants have exacerbated their breaches of fiduciary duty by agreeing to lock up the proposed transaction with deal protection devices, such as a no solicitation, a matching rights, and a $25million termination fee provision, that preclude other bidders from making successful competing offers for Knology.
Those who are current investors in Knology, Inc. (NASDAQ:KNOL) and purchased their Knology, Inc. (NASDAQ:KNOL) 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