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Acquisition of Westway Group, Inc. by EQT Infrastructure II May Not Be in Westway Group Shareholders' Best Interests
By: PR Newswire
Dec. 21, 2012 09:44 PM
SAN DIEGO and NEW ORLEANS, Dec. 21, 2012 /PRNewswire/ -- Shareholder rights attorneys at Robbins Umeda LLP are investigating possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Westway Group, Inc. (NASDAQ: WWAY) in connection with their efforts to sell the company to an affiliate of EQT Infrastructure II.
On December 20, 2012, Westway Group and EQT Infrastructure II announced they had entered into a definitive merger agreement under which EQT Infrastructure II will acquire Westway Group through an all cash offer tender offer. Westway Group shareholders will receive $6.70 per share. The transaction is expected to close in the first quarter of 2013.
The Board of Directors' Actions May Prevent Westway Group Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP's investigation focuses on whether the board of directors at Westway Group is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. The $6.70 per share offer price represents a premium of only 10% based on Westway Group's closing price on December 20, 2012, and is below the $6.78 per share price the company's stock traded at on September 19, 2012. Further, the $6.70 per share offer price is below the $6.91 target price maintained by an analyst at Clarkson Capital since February 7, 2012. In addition, on November 9, 2012, Westway Group announced strong financial results for the third quarter 2012, reporting a 21% increase in net income over the same period in 2011 and net revenue of $106.2 million, which beat analyst's estimates for the sixth time in the previous eight quarters. Given, these facts, the firm is examining whether the board of directors' decision to sell Westway Group for $6.70 per share is fair to shareholders and maximizes the value for their shares.
Westway Group shareholders have the option to file a class action lawsuit against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can make an informed decision on whether to tender their shares in the tender offer. If you own stock in Westway Group and are interested in information about your rights and potential remedies, contact Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/westway-group-inc/
Attorney Advertising. Past results do not guarantee a similar outcome.
SOURCE Robbins Umeda LLP
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