A lawsuit was filed for investors in shares of Meredith Corporation (NYSE:MDP) in connection with the proposed takeover was announced and NYSE:MDP stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/17/2015 -- A shareholder in shares of Meredith Corporation (NYSE:MDP) filed a lawsuit in effort to halt the proposed takeover of Meredith Corporation by Media General, Inc for a value of approximately $51.53 per share.
Investors who purchased shares of Meredith Corporation (NYSE:MDP) and currently hold any of those NYSE:MDP shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:MDP stockholders by agreeing to sell Meredith Corporation too cheaply via an unfair process to Media General, Inc
On September 8, 2015, Media General, Inc. (NYSE: MEG) and Meredith Corporation (NYSE:MDP) announced a e merger agreement under which Media General will acquire all of the outstanding common stock of Meredith Corporation (NYSE:MDP) in a cash and stock transaction currently valued at approximately $2.4 billion. Under the terms of the agreement, Meredith Corporation (NYSE:MDP) shareholders will receive cash and stock valued at $51.53 per share.
However, the plaintiff claims that the proposed consideration NYSE:MDP shareholders will receive is grossly inadequate and undervalues Meredith Corporation. Indeed, at least one analyst has set the high target price for NYSE:MDP shares at $58.00 per share and NYSE:MDP shares traded in the open market as high as $56.96 per share as recently as March 2015. Meredith Corporation reported that its Total Revenue rose from over $1.46 billion for the 12 months period that ended on June 30, 2014 to over $1.59 billion for the 12 months period that ended on June 30, 2015 and that its Net Income for those respective time periods increased from $113.54 million to $136.79 million.
In addition, the plaintiff claims that the process is also unfair to NYSE:MDP stockholders. Indeed D. Mell Meredith Frazier, a director of Meredith, and her brother E.T. (Tom) Meredith IV, who together beneficially own 63%of the Meredith Class B shares, have already agreed to vote in favor of the transaction.
On November 16, 2015, NYSE:MDP shares closed at $45.87 per share.
Those who are current investors in Meredith Corporation shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com