An investor in NASDAQ:ELRC shares filed a lawsuit in effort to halt the proposed takeover of Van Nuys, CA based Electro Rent Corporation by Platinum Equity for $13.12 per share.
Investors who purchased shares of Electro Rent Corporation (NASDAQ:ELRC) and currently hold any of those NASDAQ:ELRC 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 NASDAQ:ELRC stockholders by agreeing to sell Electro Rent Corporation too cheaply via an unfair process to Platinum Equity
On May 31, 2016, Platinum Equity and Electro Rent Corporation announced that they have entered into an agreement under which Electro Rent Corporation (NASDAQ:ELRC) would be acquired by Platinum Equity for approximately $323.4 million. Under the agreement, Platinum Equity would acquire all of Electro Rent Corporation’ common stock. Electro Rent Corporation (NASDAQ:ELRC) stockholders will receive $13.12 per share.
However, plaintiff claims that the proposed consideration NASDAQ:ELRC shareholders will receive is grossly inadequate and undervalues Electro Rent Corporation. In addition, the plaintiff alleges that the process is also unfair to NASDAQ:ELRC stockholders. Indeed, Electro Rent Chairman Daniel Greenberg and a member of his immediate family, who collectively own approximately 29% of the company’s outstanding shares of common stock, have already entered into voting agreements in support of the sale and have granted an affiliate of Platinum Equity irrevocable proxies to execute those agreements.
On June 17, 2016, NASDAQ:ELRC shares closed at $13.01 per share.
Those who are current investors in NASDAQ:ELRC shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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