This Day On The Street
Continue to site
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

Robbins Umeda LLP Announces An Investigation Of Ariba, Inc.

Shareholder rights firm Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Ariba, Inc. (NASDAQ: ARBA) in connection with their efforts to sell the company to SAP AG (NYSE: SAP). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the shareholder information form on the firm's website.

On May 22, 2012, Ariba announced that it had entered into a definitive merger agreement to be acquired by SAP. According to the terms of the deal, SAP will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, Ariba shareholders will receive $45.00 in cash for each share of the company they own. The transaction is expected to close during the third quarter of 2012.

Robbins Umeda LLP's investigation focuses on whether Ariba's board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive financial results. On April 26, 2012, Ariba reported strong operating results for the second quarter of fiscal year 2012 that beat analyst expectations. The company reported $131.5 million in revenue for the quarter, up 21% year over year and above estimates of only $129 million. Additionally, Ariba reported non-GAAP EPS of $0.25 for the second quarter of 2012, up 34% year over year and above analyst projections of only $0.22.

Notably, at least one leading market analyst has released a target price for Ariba that values the company's stock at $50.00 per share, while other analysts have voiced concern that SAP is currently underpaying for Ariba. In the words of Richard Williams, an analyst at Cross Research, "We think a counter-bid is likely and have raised our target price to $50.00 from $40.00." Given the company's impressive financial results and recent target prices, Robbins Umeda LLP is examining the board's decision to sell Ariba now at $45.00 per share rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs