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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Acquisition Of SHFL Entertainment, Inc. By Bally Technologies, Inc. May Not Be In The Best Interests Of SHFL Entertainment Shareholders

SAN DIEGO and LAS VEGAS, July 16, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of SHFL entertainment, Inc. (NASDAQ: SHFL) ("SHFL"), by Bally Technologies, Inc. (NYSE: BYI) ("Bally").  On July 16, 2013, the two companies announced a definitive merger agreement in which Bally will acquire all of the outstanding shares of SHFL at a per share price of $23.25 in cash.

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Is the Acquisition Best for SHFL Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at SHFL is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.  The $23.25 merger consideration represents a premium of 24.3% based on SHFL's closing price on July 15, 2013, which is substantially below the average premium of 49.43% for comparable transactions in the past five years.

Further, on June 4, 2013, SHFL reported record revenue and net income for the second quarter ended April 30, 2013.  Specifically, the company reported total revenue growth to $77.4 million, an increase of 17% from the prior year.  SHFL also reported that its net income rose 22% to a record $11.8 million, compared to the same quarter 2012.  In addition, the company reported a year-over-year forty basis point increase in gross margin to 65%.  In announcing the company's quarterly results, SHFL's Chief Executive Officer Gavin Isaacs stated, "Given the 22% increase in net profit that we announced today, we strongly believe that consistent execution against our strategic initiatives is the right blueprint for building long-term, sustainable value for our shareholders."

Given these facts, Robbins Arroyo is examining SHFL's board of directors' decision to be acquired by Bally now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs