Nov. 6, 2012
/PRNewswire/ -- 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 Metropolitan Health Networks, Inc. (NYSE: MDF) in connection with their efforts to sell the company to Humana Inc. (NYSE: HUM). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney
Gregory E. Del Gaizo
at (800) 350-6003,
, or via the
shareholder information form
on the firm's website.
November 5, 2012
, Metropolitan and Humana announced that they had entered into a definitive merger agreement under which Metropolitan will be acquired by Humana. According to the terms of the deal, Humana will acquire Metropolitan through an all cash tender offer valued at approximately
. Metropolitan shareholders will receive
per share. The
per share offer price represents a premium of only 3.7% based on Metropolitan's closing price on
November 5, 2012
. In contrast, in deals announced within the last year in the Healthcare Providers and Services sector, of which Metropolitan is a member, the average one-day premium has been 49.88%. Further, multiple analysts have set price targets higher than the
offer price with at least one analyst from Sidoti & Company setting a price target for Metropolitan stock at
per share as recently as
September 26, 2012
. The transaction is expected to close by the end of the first quarter of 2013.
Robbins Umeda LLP's investigation focuses on whether the board of directors at Metropolitan is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. On
August 9, 2012
, Metropolitan reported financial results for the second quarter of fiscal 2012 with revenue for the second quarter of 2012 of
for the second quarter of 2011, an increase of
or 98.8%. Metropolitan's gross profit was
for the second quarter of 2012 compared to
for the same quarter in 2011, an increase of
or 71.1%. Given these financial results, Robbins Umeda LLP is examining the board of directors' decision to sell Metropolitan now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Metropolitan shareholders have the option to file a
class action lawsuit
against the company to secure the best possible price for the company's shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
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
of value for themselves and the companies in which they have invested. For more information, please go to
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.