A lawsuit was filed for investors in NASDAQ:HOGS shares over alleged breaches of fiduciary duties in connection with the proposed takeover of ZHONGPIN INC. was announced and NASDAQ:HOGS stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/09/2012 -- An investor in NASDAQ:HOGS shares filed a lawsuit against directors of Zhongpin Inc in effort to block the takeover of Zhongpin Inc. by its Chairman and CEO of Zhongpin Inc.. for $13.50 per NASDAQ:HOGS share.
Investors who purchased shares of ZHONGPIN INC. (NASDAQ:HOGS) prior to March 27, 2012 and currently hold any of those NASDAQ:HOGS shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
On March 27, 2012, Zhongpin Inc. announced that its Board of Directors received a preliminary, non-binding proposal from its Chairman and Chief Executive Officer, Mr. Xianfu Zhu , which stated that Mr. Xianfu Zhu intends to acquire all of the outstanding shares of the Company's common stock not currently owned by him in a going private transaction at a proposed price of $13.50 per share in cash.
However, the plaintiff alleges that the offer by Chairman and CEO of Zhongpin Inc. is too low and wholly inadequate considering Zhongpin’s recent financial performance and the board of directors failure to shop Zhongpin Inc to third parties.
In fact, NASDAQ:HOGS traded during January 2011 NASDAQ:HOGS shares traded over $19 per share and in the end of 2010 even as high as almost $23 per share. Furthermore ZHONGPIN INC. has performed well for its investors. In fact, ZHONGPIN INC. reported that its annual Revenue rose from $539.83million in 2008 to $1.45billion in 2011 and its Net Income increased from $31.38million in 2008 to $64.22million in 2011.
In addition the plaintiff claims that despite that a so-called “Special Committee” will be formed to evaluate the Buyout, the Buyout is essentially a fait accompli because the Special Committee is acting to appease Mr. Xianfu Zhu, who effectively controls Zhongpin Inc and who has no interest in a fair evaluation of the Buyout. Indeed, Mr. Xianfu Zhu already currently beneficially owns approximately 17.5% of Zhongpin’s common stock.
The plaintiff says the offer is opportunistic and harmful to public shareholders.
NASDAQ:HOGS shares closed on April 5, 2012 at $10.53 per share.
On April 6, 2012, the Securities and Exchange Commission announced that it has obtained a court-ordered freeze of the assets of six Chinese citizens and one British Virgin Islands entity charged with insider trading in Zhongpin Inc.
Those who are current investors in ZHONGPIN INC. (NASDAQ:HOGS) and purchased their NASDAQ:HOGS shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego