The law firm of Wohl & Fruchter LLP has commenced an investigation into the offer extended by Annaly Capital Management, Inc. (Annaly) to acquire CreXus Investment Corp. (CreXus) (NYSE: CXS).
Annaly currently owns about 12% of CreXus. On November 12, 2012, CreXus announced that it had received a proposal from Annaly to acquire the remaining shares of CreXus that Annaly does not already own for $12.50 per share in cash, a premium of only 13% to CreXus’s closing price on Friday, November 9, 2012.
Annaly’s wholly owned subsidiary, Fixed Income Discount Advisory Co. (FIDAC) manages CreXus, and two of FIDAC’s employees are on CreXus’ board of directors.
Wohl & Fruchter’s investigation concerns the fairness of the buyout offer and the process to be used by CreXus to evaluate the offer in light of the conflicts of interest posed by Annaly’s existing ownership stake in CreXus and FIDAC’s management of CreXus.Additional information is available at http://www.wohlfruchter.com/cases/cxs. Persons with relevant information, and CreXus shareholders with questions about this investigation, are invited to contact our Firm. About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.