Newman Ferrara LLP is investigating potential claims against the board of directors of ALCO Stores, Inc. (“ALCO”) (NasdaqGM: ALCS) concerning the proposed acquisition of ALCO by private investment firm Argonne Capital Group, LLC.
On July 25, 2013, ALCO announced that it had entered into a definitive merger agreement to be acquired by Argonne in a deal valued at approximately $47 million. Under the terms of the agreement, ALCO’s shareholders will receive $14.00 per share in cash for each share of ALCO stock owned. However, the $14.00 per share proposed offer price values ALCO at only 45% of ALCO’s April 30, 2013 reported book value of $30.89 per share.
Newman Ferrara LLP’s investigation concerns whether ALCO’s Board of Directors has breached its fiduciary duties to act in the best interests of ALCO’s shareholders. The investigation focuses on the potential unfairness of the consideration being provided to ALCO’s shareholders and the process by which ALCO’s Board of Directors considered and approved the proposed deal.
Concerned investors may contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or
to discuss this investigation, their rights, or potential remedies.
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