NEW YORK (TheStreet) -- Shares of Sapient Corp. (SAPE) closed down 0.08% to $24.65 after the securities litigation law firm Brower Piven commenced an investigation into possible breaches of fiduciary duty relating to the proposed buyout of the company by Publicis Groupe SA (PUBGY) .
On November 3, Sapient, a global marketing and technology services company, announced that Publicis Groupe would acquire Sapient in a transaction valued at approximately $3.7 billion.
The investigation seeks to determine whether Sapient's board of directors failed to satisfy their duties to the company's shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the company's shares of common stock, the law firm said.
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The transaction is expected to close in the first quarter of 2015.
Separately, TheStreet Ratings team rates SAPIENT CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate SAPIENT CORP (SAPE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."