A lawsuit was filed for investors in shares of MTR Gaming Group, Inc. (NASDAQ:MNTG) in effort to halt the proposed takeover and NASDAQ:MNTG stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/15/2013 -- An investor, who currently hold shares of MTR Gaming Group, Inc. (NASDAQ:MNTG), filed a lawsuit in effort to halt the proposed takeover of MTR Gaming Group, Inc. by Eldorado Resorts, LLC for $5.15 per NASDAQ:MNTG share.
Investors who purchased shares of the MTR Gaming Group, Inc. (NASDAQ:MNTG) and currently hold any of those NASDAQ:MNTG 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:MNTG stockholders arising out of the attempt to sell MTR Gaming Group, Inc. too cheaply via an unfair process to Eldorado Resorts, LLC.
On September 9, 2013, MTR Gaming Group, Inc. and Eldorado Resorts, LLC announced that they have entered into an agreement under which MTR Gaming Group will combine with the parent company of Eldorado Resorts, LLC in a stock merger. MTR Gaming Group, Inc. said that as part of the transaction, a cash election option will be offered at $5.15 per share for up to 5.8 million shares to MTR Gaming’s current stockholders and that MTR Gaming’s remaining common shares will be exchanged for shares in the combined new company.
However, the plaintiff claims that the offer is too low and undervalues MTR Gaming Group, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:MNTG shares at $7.00 per share. Furthermore, MTR Gaming Group, Inc. reported that its annual Total Revenue rose from $428.08 million in 2011 to $490.00 million in 2012 and that its respective Net Loss declined from $50.37 million to $5.72 million. Shares of MTR Gaming Group, Inc. grew from $1.58 per share in November 2011 to as high as $4.99 per share in June 2012.
On October 11, 2013, NASDAQ:MNTG shares closed at $5.07 per share.
Those who are current investors in MTR Gaming Group, Inc. shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego