This Day On The Street
Continue to site
ADVERTISEMENT
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

Acquisition Of Nash Finch Company By Spartan Stores, Inc. May Not Be In The Best Interests Of Nash Finch Shareholders

SAN DIEGO & MINNEAPOLIS, July 22, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Nash Finch Company (NASDAQ: NAFC) ("Nash Finch"), by Spartan Stores, Inc. (NASDAQ: SPTN) ("Spartan Stores").  On July 22, 2013, the two companies announced a definitive merger agreement under which Nash Finch and Spartan Stores will combine in an all-stock merger.  Under the terms of the agreement, Nash Finch shareholders will receive 1.20 shares of Spartan Stores common stock for each share of Nash Finch common stock, or $25.44 per share based on Spartan Store's closing price of $21.20 on July 19, 2013.

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

Is the Merger Best for Nash Finch Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Nash Finch is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger. 

The $21.20 merger consideration is substantially below the target price of $33.00 maintained by an analyst at BOE Securities, Inc. since December 11, 2011.  Further, the $21.20 consideration represents a premium of less than 1% based on Nash Finch's closing price on July 19, 2013.  That premium is substantially below the average premium of 39.41% for comparable transactions in the past three years.  Moreover, Nash Finch traded above the offer price as recently as July, 19, 2013, trading as high as $25.59.

Given these facts, Robbins Arroyo is examining Nash Finch's board of directors' decision to merge with by Spartan Stores now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs