An investigation on behalf of investors of FirstCity Financial Corporation (NASDAQ:FCFC) in connection with the proposed takeover was announced and NASDAQ:FCFC stockholders should contact the Shareholders Foundation.

San Diego, CA -- (SBWire) -- 01/08/2013 --An investigation on behalf of investors in FirstCity Financial Corporation (NASDAQ:FCFC) shares was announced concerning whether the offer by Värde Partners, Inc.to acquire FirstCity Financial Corporation for $10.00 per NASDAQ:FCFC share and the takeover process are unfair to investors in NASDAQ:FCFC shares.

Investors who purchased shares of FirstCity Financial Corporation (NASDAQ:FCFC) prior to December 21, 2012, and currently hold any of those NASDAQ:FCFC shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether certain officers and directors of FirstCity Financial Corporation (NASDAQ:FCFC breached their fiduciary duties owed to NASDAQ:FCFC investors in connection with the proposed acquisition.

On December 21, 2012, FirstCity Financial Corporation (NASDAQ: FCFC) and Värde Partners, Inc. announced that they have entered into a merger agreement under which certain funds managed by Värde Partners will acquire FirstCity Financial Corporation. Under the terms of the merger agreement, FirstCity Financial Corporation stockholders will receive $10.00 per share in cash for each share of FirstCity stock they own. The transaction is valued at $224.9 million, including debt.

However, FirstCity’s financial performance improved lately. For instance, First City Financial Corporation reported that its annual Revenue rose from $45.20 million for 2008 to $74.32 million in 2011 and its Net Loss of $46.67 million in 2008 turned into a Net Income of $24.22 million in 2011. Furthermore, shares of FirstCity Financial Corporation (NASDAQ:FCFC) traded as recently as April 2012 as high as $10.00 per share.

Therefore the investigation a law firm concerns whether the proposed transaction is unfair to NASDAQ:FCFC stockholders. Specifically, the investigation focuses on whether the FirstCity Financial Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Those who are current investors in FirstCity Financial Corporation (NASDAQ:FCFC), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com