Shareholders Foundation, Inc.

ZHONGPIN INC. (NASDAQ:HOGS) Investor Alert - Takeover Bid Under Investigation

An investigation on behalf of investors of ZHONGPIN INC. (NASDAQ:HOGS) in connection with the takeover was announced and NASDAQ:HOGS stockholders should contact the Shareholders Foundation.

 

San Diego, CA -- (SBWIRE) -- 03/28/2012 -- The announcement that the Chairman and CEO of Zhongpin Inc. proposed to acquire all of the outstanding shares of Zhongpin Inc. for $13.50 per NASDAQ:HOGS shares prompted an investigation for investors in ZHONGPIN INC. (NASDAQ:HOGS) shares concerning whether the offer to acquire ZHONGPIN INC. and the buyout process are unfair to investors in NASDAQ:HOGS shares.

Investors who purchased shares of ZHONGPIN INC. (NASDAQ:HOGS) prior to March 27, 2012, and currently hold any NASDAQ:HOGS shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigations by law firms concern whether certain officers and directors of ZHONGPIN INC. breach their fiduciary duties owed to NASDAQ:HOGS investors in connection with the proposed acquisition.

On Tuesday, March 27, 2012, Mar 27, 2012, Zhongpin Inc. (NASDAQ: HOGS) announced that its Board of Directors has 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.

Following the takeover announcement shares of ZHONGPIN INC. (NASDAQ:HOGS) jumped from $10.08 to $12.20 during Tuesday, March 27, 2012.

However, 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.

Mr. Zhu also currently beneficially owns approximately 17.5% of the Company's common stock.

Therefore the investigation for NASDAQ:HOGS investors concerns whether the proposed transaction is unfair to NASDAQ:HOGS stockholders. Specifically the investigation focuses on whether the Zhongpin Board of Directors will undertake an adequate sales process, will adequately shop the company before entering into any transaction, maximize shareholder value by negotiating the best price, and act in the shareholders' best interests in connection with the proposed sale.

Those who are current investors in ZHONGPIN INC. (NASDAQ:HOGS) and purchased their ZHONGPIN INC. (NASDAQ:HOGS) shares prior to the announcement, have certain options and should contact the Shareholders Foundation.

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