An investor in NYSE:IMS shares filed a lawsuit against the buyout of IMS Health Holdings Inc by Quintiles Transnational Holdings.
Investors who purchased shares of IMS Health Holdings Inc (NYSE:IMS) and currently hold any of those NYSE:IMS 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:IMS stockholders by agreeing to sell IMS Health Holdings Inc too cheaply via an unfair process to Quintiles Transnational Holdings.
On May3, 2016, IMS Health Holdings Inc (NYSE:IMS) and Quintiles Transnational Holdings Inc. (NYSE:Q) announced that their respective boards of directors approved a merger agreement, pursuant to which the companies will be combined in an all-stock merger of equals transaction. Under the terms of the merger agreement, IMS Health Holdings Inc (NYSE:IMS) shareholders will receive a fixed exchange ratio of 0.384 shares of Quintiles common stock for each share of IMS Health common stock. Based on a closing price of $69.10 per NYSE:Q shares on May 2, 2016, shareholders of IMS Health Holdings Inc (NYSE:IMS) will receive a value of approximately $26.53 per NYSE:IMS share.
However, plaintiff claims that the proposed consideration NYSE:IMS shareholders will receive is grossly inadequate and undervalues IMS Health Holdings. Indeed, at least one analyst has set the high target price for NYSE:IMS shares at $32.00 per share. Furthermore, IMS Health Holdings Inc reported that its annual Total Revenue rose from over $2.64 billion in 2014 to over $2.92 billion in 2015 and that its Net loss of $189 million in 2014 turned into a Net Income of $417 million in 2015. Shares of IMS Health Holdings Inc (NYSE:IMS) reached as high as 33.15 per share in July 2015. In addition, the plaintiff alleges that the process is also unfair to NYSE:IMS stockholders. The plaintiff says that the defendants agreed to preclusive deal protection devices, such as a $250 million termination fee, no-solicitation, and matching rights provision, that deter other bidders from making a superior offer for IMH Health Holdings.
On June 2, 2016, NYSE:IMS shares closed at $26.23 per share.
Those who are current investors in NYSE:IMS shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego