Securities Attorneys at Gilman Law, LLP are investigating a recent acquisition announcement by Shanda Games Limited (NASDAQ:GAME)("Shanda Games" or "Company"). The Company announced that it will acquire the following affiliates from its parent company, Shanda Interactive Entertainment Limited – Shanghai Shengzhan Networking Technology Co., Ltd. ("Shengzhan") and Tianjin Shengjing Trade Co., Ltd. ("Shengjing"). Both Shengzhan and Shengjing are under the common control of the parent company, along with Shanda Games. (Company press release: http://ir.shandagames.com/releasedetail.cfm?ReleaseID=780743) Shengzhan owns the Shanda Pass database, which contains account information for gamers that is used to access games operated by Shanda Games, and maintains a customer service team. Shengjing owns approximately 180,000 prepaid card distribution channels. The "special committee" formed to evaluate the acquisition transaction was advised by an outside law firm and accounting firm. Shanda Games' board of directors, acting upon the unanimous recommendation of the special committee, approved the transaction. (Company press release: http://ir.shandagames.com/releasedetail.cfm?ReleaseID=780743) The acquisitions were announced on Sunday, July 28, 2013, and are slated to close in the third quarter of 2013 for US$811.5 million (subject to customary closing conditions and adjustments). Shanda Games alleges that buying the affiliates will help it deliver the type of integrated platform it considers crucial for mobile success. (Company press release: http://ir.shandagames.com/releasedetail.cfm?ReleaseID=780743) Is the Acquisition Best for Shanda Games and Its Shareholders? On July 29, 2013, the day after Shanda Games announced the transaction, Company shares had fallen 21.4%, which significantly impacted the Company's share price, which had previously doubled since early May 2013. Since the announcement on July 28, the Company's shares have plummeted 37%. This share price plunge could be due to a variety of factors, such as the market seeing the deal as a poorly-priced transaction, or viewing it as evidence of the risks posed by Shanda Games' unique and not-so-independent ownership structure to shareholder interests.
http://seekingalpha.com/currents/post/1202882) (Source – Stock Chart: https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1375128000000&chddm=25900&chls=IntervalBasedLine&q=NASDAQ:GAME&ntsp=0&ei=2Jf2UaHmEsnoiAL4QA) What Can Shareholders Do About the Plummeting Share Price? Shanda Games' shareholders have the option to file a class action lawsuit to in order to determine whether this acquisition is in the best interest of the shareholders and require the disclosure of material information so shareholders can vote on the transaction in an informed manner. Shanda Games shareholders interested in information about their rights and potential remedies can receive a free consultation by contacting Ken Gilman at 1-888-252-0048, or via the information form on the firm's website at http://www.GilmanLawLLP.com/. Gilman Law LLP Gilman Law LLP, a leading national law firm with offices in Florida and Massachusetts, has been recognized for delivering successful results to their clients across a broad range of claims, including securities law violations, derivative actions, antitrust matters, and class action lawsuits. For over 32 years, the Gilman Law LLP team of highly experienced lawyers has earned renown for tireless work on behalf of their clients on many of today's most challenging and important legal issues.
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