The Shareholders Foundation announces that an investor, who currently holds shares of Covance Inc. (NYSE:CVD), filed a lawsuit in effort to halt the proposed takeover of Covance Inc. by Laboratory Corporation of America Holdings for a value of approximately $105.12 per share.
Investors who purchased shares of Covance Inc. (NYSE:CVD) and currently hold any of those NYSE:CVD shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:CVD stockholders by agreeing to sell Covance Inc too cheaply via an unfair process to Laboratory Corporation of America Holdings.
On November 3, 2014, Laboratory Corporation of America Holdings (“LabCorp”) (NYSE: LH) and Covance Inc. (NYSE:CVD) announced that they have entered into an agreement under which LabCorp will acquire Covance Inc. (NYSE:CVD) for cash and LabCorp shares currently valued at $105.12 per Covance Inc. (NYSE:CVD) share, or an equity value of approximately $6.1 billion and an enterprise value of approximately $5.6 billion.
However, the plaintiff claims that the offer is too low and undervalues Covance Inc. Indeed, NYSE:CVD shares traded as recently as April 2014 as high as $106.64 per share in the open market. In addition, Covance Inc’s performance improved lately. In fact, Covance Inc. reported that its annual Total Revenue rose from over $2.36 billion in 2012 to over $2.59 billion in 2013 and that its Net Income increased from $94.73 million in 2012 to $179.21 million in 2013. Shares of Covance Inc. (NYSE:CVD) grew from $43.32 per share in early 2012 to over $106 per share in April 2014. In addition, the plaintiff claims that the process is also unfair to NYSE:CVD stockholder.
On December 18, 2014, NYSE:CVD shares closed at $103.52 per share.
Those who are current investors in Covance Inc. shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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