Kendall Law Group, led by former federal judge Joe Kendall, is investigating Rewards Network Inc. (NASDAQ: DINE) for shareholders in connection with the proposed acquisition by EGI Acquisition, L.L.C., an affiliate of Equity Group Investments, L.L.C. The national securities firm’s investigation seeks to determine whether Rewards Network and its Board breached their fiduciary duties by entering into the agreement without properly shopping for a deal that would provide better value for shareholders. If you are a Rewards Network shareholder and would like additional information about your rights, contact the Kendall Law Group at 877-744-3728 or by email at firstname.lastname@example.org.
On October 28, 2010, Rewards Network announced that the companies have entered into a definitive merger agreement under which Rewards Network would be acquired by EGI Acquisition, L.L.C., in a transaction valued at approximately $126 million. Under the terms of the agreement, Rewards Network stockholders will receive $13.75 in cash for each share of Rewards Network/DINE common stock, which represents an approximately 39% premium over the closing price of Rewards Network's common stock on June 8, 2010, the day before Rewards Network announced that it had received “indications of interest in pursuing a strategic transaction.” Rewards Network stock had been traded for prices as high as $15.09 earlier this year, prior to the announcement. Rewards Network stock closed at $14.19 the day prior to the announcement of the merger. Due to these factors, the firm believes the transaction significantly undervalues the company.
Kendall Law Group was founded by a former federal judge, includes a former United States Attorney, prosecutors and securities lawyers who are experienced in complex securities litigation. The firm has been counsel in numerous merger and acquisition cases nationwide, including some of the largest transactions in the United States.