An investigation on behalf of investors, who currently hold shares of Rackspace Hosting, Inc. (NYSE:RAX), was announced concerning the acquisition of Rackspace Hosting, Inc. by funds managed by affiliates of Apollo Global Management, LLC for $32.00 per share.
San Diego, CA -- (SBWIRE) -- 08/29/2016 -- Investors who purchased shares of Rackspace Hosting, Inc. (NYSE:RAX) and currently hold any of those NYSE:RAX shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The investigation by a law firm concerns whether certain directors of Rackspace Hosting, Inc. breached their fiduciary duties owed to NYSE:RAX investors in connection with the proposed acquisition.
On August 26, 2016, Rackspace Hosting, Inc. (NYSE:RAX) announced that it has entered into an agreement with affiliates of certain funds (the "Apollo Funds") managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, "Apollo") (NYSE: APO)to be acquired for $32.00 per share in cash.
However, given that at least one analyst has set the high target price for NYSE:RAX shares at $44.00 per share, the investigation concerns whether the offer is unfair to NYSE:RAX stockholders. More specifically, the investigation concerns whether the Rackspace Hosting 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.
On August 26, 2016, NYSE:RAX shares closed at $31.50 per share
Those who are current investors in Rackspace Hosting, Inc. shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com