The law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of Savvis, Inc. (“Savvis”) (NASDAQ:SVVS) and other violations of state law by the board of directors of Savvis relating to the proposed acquisition of the company by CenturyLink, Inc. (“CenturyLink”). The firm’s investigation seeks to determine, among other things, whether Savvis and its board breached their fiduciary duties by failing to maximize shareholder value.
On April 27, 2011, Savvis and CenturyLink jointly announced that they had entered into a definitive agreement for Savvis to be acquired by CenturyLink. Under the terms of the agreement, CenturyLink will acquire all outstanding shares of Savvis common stock in a cash and stock merger valued at $40 per share, or a total of approximately $2.5 billion, plus net debt of approximately $0.7 billion which will be assumed or refinanced at close. Under the terms of the transaction, Savvis stockholders will receive $30 per share in cash and $10 in shares of CenturyLink common stock, subject to adjustment. The consideration represents an 11% premium over Savvis’s closing stock price as of the close of trading on April 26, 2011. However, Savvis recently announced positive financial results for the first quarter 2011, with revenue of $257.0 million, compared to $216.6 million in the first quarter of 2010, and adjusted EBITDA of $75.0 million, compared to $54.0 million of adjusted EBITDA in the first quarter of 2010. The transaction is expected to close in the second half of 2011.
If you currently own shares of Savvis and would like to learn more about the investigation being conducted by Brower Piven, you may email or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at email@example.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.