This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Federman & Sherwood Announces Investigation Of China Advanced Construction Materials Group, Inc.

Stocks in this article: CADC

The law firm of Federman & Sherwood has initiated an investigation into China Advanced Construction Materials Group, Inc. (NASDAQ: CADC) (“CADC” or “Company”) and its Board of Directors with respect to possible breaches of fiduciary duty by the company and its officers and directors, as well as violations of state law, arising from the proposed acquisition of all outstanding shares of CADC common stock by the Company’s largest shareholders, Chairman of the Board and CEO, Xianfu Han (“Han”) and Vice-Chairman of the Board and COO, Weili He (“He”).

On July 26, 2011, CADC announced that it had received an offer from Mr. Han and Mr. He to acquire all outstanding shares of common stock not currently owned by them in a going-private transaction at a proposed price of $2.65 per share, in cash. Mr. Han and Mr. He currently own, cumulatively, approximately 49% of the company’s common stock. Federman & Sherwood is investigating whether the proposed sale of stock will irreparably harm other shareholders if the Company allows the sale of all remaining common stock to be sold to Mr. Han and Mr. He; and, whether the consideration to be paid by Mr. Han and Mr. He for said stock is unfair, inadequate and substantially below the fair market value of CADC shares. According to various financial analysts, a low target price for CADC stock is $4.00 per share, with a high target price of $5.00 per share. Additionally, CADC stock has traded as high as $5.39 per share as recently as January 11, 2011, and has closed above the $2.65 share offer price as recently as May 26, 2011. Federman & Sherwood questions whether the officers and directors have taken all steps necessary to maximize shareholder value in relation with the possible change in control of China Advanced Construction Materials.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs