This Day On The Street
Continue to site right-arrow
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 Questcor Pharmaceuticals, Inc. By Mallinckrodt Plc May Not Be In Shareholders' Best Interests

Stocks in this article: MNK QCOR

SAN DIEGO and ANAHEIM, Calif., April 7, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP is investigating the proposed acquisition of Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) by Mallinckrodt plc (NYSE: MNK).  On April 7, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Questcor shareholders will receive $30.00 per share in cash and 0.897 Mallinckrodt shares for each for each share of Questcor common stock, for a total consideration of $86.10 per share.

Robbins Arroyo LLP.

Is the Proposed Acquisition Best for Questcor and Its Shareholders?

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

As an initial matter, the $86.08 merger consideration represents a premium of 27% based on Questcor's closing price of $67.78 on April 4, 2014.  This premium is significantly below the average one day premium of over 46% for comparable transactions in the last three years. Further, at least five analysts set a target price higher than the merger consideration including a target price of $99.00 set by an analyst at Oppenheimer & Co. on February 25, 2014 and a target price of $98.00 set by an analyst at Piper Jaffray on the same day.  

In addition, on February 25, 2014, Questcor released its financial results for the fourth quarter and full year 2013, reporting strong increases in net sales and EPS.  Specifically, Questcor reported net sales of $242.9 million for the quarter and $799 million for the fiscal year, an increase of 51% and 57% over the respective periods in 2012. In addition, the company reported a Non-GAAP Diluted EPS increase of 53% for the quarter compared to the same quarter 2012, and an increase of 65% year-over-year.

Given these facts, Robbins Arroyo LLP is examining the Questcor board of directors' decision to sell the company to Mallinckrodt.  Questcor shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.  Questcor shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.   

Attorney Advertising. Past results do not guarantee a similar outcome.  

1 of 2

Select the service that is right for you!

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 17,655.04 +298.17 1.72%
S&P 500 2,045.56 +32.67 1.62%
NASDAQ 4,725.8240 +81.5120 1.76%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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