A lawsuit was filed for investors in shares of Tower Group International, Ltd. (NASDAQ:TWGP) in effort to halt the proposed takeover and NASDAQ:TWGP stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 01/16/2014 -- An investor, who currently holds NASDAQ:TWGP shares, filed a lawsuit in effort to halt the proposed takeover of Tower Group International, Ltd. by ACP Re Ltd. for $3.00 per share.
Investors who purchased shares of Tower Group International, Ltd. (NASDAQ:TWGP) and currently hold any of those NASDAQ:TWGP 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 breached their fiduciary duties owed to NASDAQ:TWGP stockholders arising out of the attempt to sell Tower Group International, Ltd. too cheaply via an unfair process to ACP Re Ltd..
On January 6, 2014, Tower Group International, Ltd. (NASDAQ:TWGP) announced that on January 3, 2014 it entered into an Agreement and Plan of Merger with ACP Re Ltd. (ACP Re), and a wholly-owned subsidiary of ACP Re (Merger Sub), pursuant to which, subject to the satisfaction or waiver of the conditions therein, it is expected that Merger Sub will merge with and into Tower Group International, Ltd., with Tower Group International, Ltd. as the surviving corporation in the merger and a wholly owned subsidiary of ACP Re. Pursuant to the terms of the Merger Agreement, at the effective time of the merger, each outstanding share of Tower Group International, Ltd.'s common stock, par value $0.01 per share, following the settlement of all outstanding equity awards, will be converted into the right to receive $3.00 in cash, with an aggregate value of approximately $172.1 million.
However, the plaintiff alleges that the $3.00-offer is too low and undervalues Tower Group International, Ltd. Indeed, at least one analyst has set the high target price for NASDAQ:TWGP shares at $5.00 per share and Tower Group International shares traded as recently as August 2013 as high as $22.02 per share.
In addition, the plaintiff claims that the process is also unfair to NASDAQ:TWGP stockholders. Indeed, Michael H. Lee, the Chairman, President and Chief Executive Officer of Tower Group International, who beneficially owns approximately 4.2% of the issued and outstanding common stock of Tower as of January 3, 2014, has already entered into a support agreement pursuant to which he has agreed to vote his shares in favor of the merger
Shares of Tower Group International, Ltd. (NASDAQ:TWGP) closed on Jan. 13, 2014, at $2.56 per share.
Those who are current investors in Tower Group International, Ltd. shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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