Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the Board of Directors of Cole Real Estate Investments, Inc. (Nasdaq: COLE) breached their fiduciary duties in connection with the Company’s proposed acquisition by American Realty.
On October 23, 2013 Cole announced that it had entered into a definitive merger agreement to be acquired by American Realty. Under the terms of the merger agreement, American Realty would offer 1.0929 of its shares or $13.82 in cash for each Cole share. The stock share offer is valued at $14.59 per Cole share based on American Realty's October 22, 2013 closing price of $13.35. The merger is scheduled to be completed by the first half of 2014.
The investigation will determine whether Cole’s directors breached their fiduciary duties to stockholders by failing to satisfactorily shop the Company before entering into this agreement. Scott Holleman, an attorney for Johnson & Weaver, stated that, “American Realty’s offer appears to be inadequate and not in the best interest of the shareholders.” Holleman continued, “Based on recent cash flow trends and other valuations American Realty’s offer appears much to low.”
If you are a shareholder of Cole and believe 1) the proposed buyout price is too low or 2) the deal favors the officers and directors and not the shareholders or 3) you’re interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ( firstname.lastname@example.org) at 619-230-0063.Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.