|By PR Newswire||
|November 16, 2012 08:01 PM EST||
SAN DIEGO and TEMECULA, Calif., Nov. 16, 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 Outdoor Channel Holdings, Inc. (NASDQ: OUTD) in connection with their efforts to sell the company to InterMedia Outdoors Holdings, LLC.
On November 16, 2012, Outdoor Channel and InterMedia announced they had entered into a definitive merger agreement under which InterMedia will acquire Outdoor Channel through a cash and stock election merger with a total value of $176.6 million. Outdoor Channel shareholders will receive $8.00 per share or one share of stock in InterMedia. Following the completion of the merger, Outdoor Channel will become InterMedia Outdoor Holdings, Inc.
The Board of Directors' Actions May Prevent Outdoor Channel Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP's investigation focuses on whether the board of directors at Outdoor Channel is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. The $8.00 per share offer price represents a premium of only 11% based on Outdoor Channel's closing price on November 15, 2012 and is substantially below recent target prices set by analysts. As recently as September 9, 2012, an analyst from Noble Financial Group set a target price of $9 per share. Further, recently the company has reported impressive results. On November 7, 2012, Outdoor Channel reported its third quarter 2012 earnings results reflecting a 13% increase in revenue and net income which beat consensus analyst estimates by 40%. Moreover, following the completion of the merger, Outdoor Channel's current management team will manage the combined company. Given these financials and management's continued role at the post acquisition company, the firm is examining the board of directors' decision to sell Outdoor Channel now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Outdoor Channel 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 vote on the transaction in an informed manner. Outdoor Channel shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, email@example.com, 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.
Attorney Advertising. Past results do not guarantee a similar outcome.
SOURCE Robbins Umeda LLP
- "All It Took Was One E-Mail to Larry," Says Former eBay Research Director As He Moves to Google
- Google Ramps Up Its Mobile Reach: Launches "Mobile Web Search"
- VoIP Update: Yahoo! Buys DialPad
- Ericsson + Napster = World's First "Wireless Digital Music" Brand
- SYS-CON i-Technology Podcast August 30, 2005
- Free Guest Passes for the SOA World Conference & Expo in NYC
- A Flair for Food - Health-Conscious Cooking Is This Chef's Cup Of Tea
- Sony PSP May Feature Porn
- Kapow Helps Seiko UK, Provides SMS Text-Alert Services
- South Korea is World's Largest Phisher
- Will the Mac OS Now Be Offered by Dell?
- UK Targeted for Trojan Attacks