An investigation on behalf of investors, who currently hold shares of Starz (NASDAQ:STRZA), was announced concerning whether the takeover of Starz by Lionsgate is unfair to NASDAQ:STRZA stockholders.
Investors who purchased shares of Starz (NASDAQ:STRZA) and currently hold any of those NASDAQ:STRZA shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain directors of Starz breached their fiduciary duties owed to NASDAQ:STRZA investors in connection with the proposed acquisition.
On June 30, 2016, Lionsgate and Starz (NASDAQ: STRZA, STRZB) announced an agreement under which Lionsgate will acquire Starz for a combination of cash and stock totaling $4.4 billion. Under the terms of the agreement, each share of Lionsgate common stock will be reclassified into 0.5 voting and 0.5 newly created non-voting shares. Holders of each share of Starz Series A common stock will receive $18.00 in cash as well as 0.6784 of a share of Lionsgate non-voting stock based on a fixed exchange ratio. Based on Lionsgate’s 20-trading day volume weighted average price (“VWAP”), as of June 28, 2016, the offer represents a total value of $32.73 per share to Starz shareholders. Holders of each share of Starz Series B common stock will receive $7.26 in cash and 0.6321 of a share of Lionsgate voting stock and 0.6321 of a share of Lionsgate non-voting stock.
However, given that at least one analyst has set the high target price for NASDAQ:STRZA shares at $47.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:STRZA stockholders. More specifically, the investigation concerns whether the Starz Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders’ best interests in connection with the proposed sale.
Shares of Starz (NASDAQ:STRZA) closed on July 14, 2016, at $30.01 per share.
Those who purchased shares of Starz (NASDAQ:STRZA, NASDAQ:STRZB) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego