A lawsuit was filed for current investors in shares of Ceradyne, Inc. (NASDAQ:CRDN) in effort to block the proposed takeover and current NASDAQ:CRDN stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/16/2012 -- An investor in NASDAQ:CRDN shares filed a lawsuit in effort to stop the proposed buyout of Ceradyne, for $35.00 per NASDAQ:CRDN share.
Investors who purchased shares of the Ceradyne, Inc. (NASDAQ:CRDN) prior to October 1, 2012, and currently hold any of those NASDAQ:CRDN 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 directors of Ceradyne, Inc. breached their fiduciary duties owed to NASDAQ:CRDN investors arising out of the attempt to sell the company too cheaply via an unfair process to 3M.
On October 1, 2012, 3M (NYSE:MMM) and Ceradyne, Inc. (NASDAQ:CRDN) announced that they have entered into a definitive for 3M’s acquisition of Ceradyne, Inc. for $35.00 per share. The proposed transaction has an aggregate value of approximately $860 million, or approximately $670 million net of cash, cash equivalents, short-term investments and debt acquired.
However the plaintiff claims that the $35.00offer is unfair to NASDAQ:CRDN stockholders and undervalues the company. Indeed, NASDAQ:CRDN shares traded earlier this year as high as $34.64 per share, thus decreasing the premium significantly. Furthermore, at least one analyst has set the high target price of NASDAQ:CRDN shares at $37.00 per share, thus well above the current offer. In addition, Ceradyne, Inc. performed well for its investors in the past. For instance, Ceradyne, Inc. (NASDAQ:CRDN) reported that its annual Revenue rose from $400.57 million in 2009 to $571.98 million in 2011 and its Net Income surged from $8.52 million in 2009 to $83.89 million in 2011. Furtermore, shares of Ceradyne, Inc. (NASDAQ:CRDN) grew at an exceptional growth rate. In fact, NASDAQ:CRDN shares grew from as low as $14.87 per share in March 2009 to as high as $47.11 per share in May 2011.
Those who are current investors in Ceradyne, Inc. (NASDAQ:CRDN) and purchased their Ceradyne, Inc. 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