This Day On The Street
Continue to site
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

Block & Leviton LLP Investigates Greenbrier Companies Inc. For Possible Breaches Of Fiduciary Duty In Connection With Its Potential Acquisition By American Railcar Industries, Inc.

BOSTON, Dec. 18, 2012 /PRNewswire/ -- Block & Leviton LLP (, a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duty by the Board of Directors of Greenbrier Companies Inc. ("Greenbrier" or the "Company") (NYSE:GBX) concerning the proposed acquisition of the Company by American Railcar Industries, Inc. ("ARI") (NASDAQ-NMS:ARII), a company controlled by activist investor Carl Icahn ("Icahn"), in an all-cash transaction.

Under the terms of the proposed offer, ARI would acquire Greenbrier in a cash deal for approximately $20.00 per Greenbrier share, setting a value for the Company at approximately $543 million.  However, this price would fail to take into account the fact that Greenbrier common stock has been steadily climbing, gaining 36% in just the past month.  Moreover, the proposed offer price represents only two-thirds the offer price of the most recent attempt to merge Greenbrier and ARI.  Likewise, the offer price is barely a five percent premium to the previous day's closing price.  Similarly, the Company's intrinsic value is $28.56, as measured by the Thomson Reuters StarMine model.  The Starmine model measures how much a stock should be worth by considering expected growth rates.  Finally, at least one analyst has set a target price of $35.00 per share for the Company, and the mean analyst target price is $20.60.  As such, it appears that the potential transaction offers insufficient recognition of Greenbrier's growth potential.

Block & Leviton's investigation seeks to determine, among other things, whether Greenbrier's Directors breach their fiduciary duties through a failure to maximize shareholder value in the potential acquisition by ARI and the overall fairness of the process by which the Greenbrier Directors considered and approved the transaction.

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs