A lawsuit was filed for investors in shares of Precision Castparts Corp. (NYSE:PCP) in connection with the proposed takeover was announced and NYSE:PCP stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/09/2015 -- An investor in NYSE:PCP shares filed a lawsuit against the takeover of Precision Castparts Corp. by Berkshire Hathaway Inc for $235 per share.
Investors who purchased shares of Precision Castparts Corp. (NYSE:PCP) and currently hold any of those NYSE:PCP shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:PCP stockholders by agreeing to sell Precision Castparts Corp too cheaply via an unfair process to Berkshire Hathaway Inc.
On Aug. 10, 2015, the boards of directors of Berkshire Hathaway Inc. and Precision Castparts Corp. (NYSE:PCP) have approved an agreement for Berkshire Hathaway to acquire, for $235 per share in cash, all outstanding Precision Castparts Corp. (NYSE:PCP) shares. The transaction is valued at approximately $37.2 billion, including outstanding PCC net debt.
However, the plaintiff claims that the proposed consideration NYSE:PCP shareholders will receive is grossly inadequate and undervalues Precision Castparts Corp. Indeed, at least one analyst has set that high target price for NYSE:PCP shares at $252 per share. Furthermore, Precision Castparts Corp. reported that its Total Revenue rose from over $7.2 billion for the 52 weeks period that ended on April 1, 2012 to over $10 billion for the 52 weeks period that ended on March 29, 2015 and that its respective Net Income increased from over $1.22 billion to $1.53 billion. Shares of Precision Castparts Corp. (NYSE:PCP) reached in 2014 as high as $272.75 per share. In addition, the plaintiff claims that the process is also unfair to NYSE:PCP stockholders. The plaintiff alleges that there was no sales process and certain Precision Castparts' directors and executives pushed the sale in order to "cash in" their illiquid holdings. The plaintiff says that certain members of the board and the company's senior management collectively own over 1.3 million Precision Castparts Corp shares, and seek liquidity for their illiquid Precision Castparts Corp holdings and that the proposed acquisition offers that liquidity and if it closes, the board and senior management will receive over $306.7 million from the proposed acquisition.
On September 8, 2015, NYSE:PCP shares closed at $229.35 per share.
Those who are current investors in Precision Castparts Corp. (NYSE:PCP) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego