A lawsuit was filed on behalf of investors of Stellarone Corp (NASDAQ:STEL) in effort to stop the proposed takeover and NASDAQ:STEL stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/24/2013 -- An investor, who currently holds shares of Stellarone Corp (NASDAQ:STEL), filed a lawsuit in effort to stop the proposed takeover of Stellarone Corp by Union First Market Bankshares Corporation for a value of approximately $19.50 per NASDAQ:STEL share.
Investors who purchased shares of Stellarone Corp (NASDAQ:STEL) prior to June 12, 2013, and currently hold any of those NASDAQ:STEL 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 breaches their fiduciary duties owed to NASDAQ:STEL stockholders by agreeing to sell Stellarone Corp too cheaply via an unfair process.
On June 10, 2013, Union First Market Bankshares Corporation (Nasdaq:UBSH) and StellarOne Corporation (Nasdaq:STEL) announced the signing of a merger agreement, pursuant to which Union First Market Bankshares Corporation will acquire StellarOne Corporation. Under the terms of the agreement, common shareholders of StellarOne will receive 0.9739 shares of Union First Market Bankshares Corporation common stock for each share of StellarOne. This implies a deal value per share of $19.50 or approximately $445.1 million in the aggregate based on Union First Market Bankshares Corporation's closing stock price of $20.02 on June 7, 2013.
However, the plaintiff claims that the offer is too low and undervalues the company. The plaintiff says that the agreement shortchanges shareholders of Stellarone Corp, while benefiting certain officers at Stellarone Corp. Furthermore, Stellarone Corporation’s financial performance improved latetly. For instance, Stellarone Corp reported that its Net Loss of $8.53 million in 2009 turned into a Net Income of $22.16 million in 2012.
On June 21, 2013, NASDAQ:STEL shares closed at $19.19 per share.
Those who are current investors in Stellarone Corp (NASDAQ:STEL), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego