BOSTON, Feb. 6, 2013 /PRNewswire/ -- Block & Leviton LLP ( www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duty by the Board of Directors of Virgin Media, Inc. ("Virgin" or the "Company") (NASDAQ: VMED) concerning the proposed acquisition of the Company by Liberty Global Inc. ("Liberty") in a cash and stock transaction.
Under the terms of the proposed transaction, Virgin shareholders will receive $17.50 in cash, 0.2582 Liberty Series A shares and 0.1928 Liberty Global Series C shares for each Virgin share that they hold. Based on Liberty's Series A share price of $69.46 and Series C share price of $64.50 as of February 4, 2013, this implies a price of $47.87 per Virgin share. Total value for the transaction is estimated at approximately $16 billion. The Company's share price has increased more than 45% between June 2012 and February 2013, and the stock was likely to continue its growth well beyond the offer price. Neil Berkett, CEO of Virgin, is expected to receive at least between $65 million to $85 million upon the consummation of the sale. Currently, shareholders will collect a paltry 24% premium on the previous day's closing price. As such, it appears that the proposed offer price provides an insufficient premium to shareholders.
Block & Leviton's investigation seeks to determine, among other things, whether Virgin's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Liberty and the overall fairness of the process by which the Virgin Directors considered and approved the transaction.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV