The Shareholders Foundation announces that an investigation on behalf of investors in Rackspace Hosting, Inc. (NYSE:RAX) shares was launched concerning whether a potential takeover of Rackspace Hosting would be unfair to investors in NYSE:RAX shares.
Investors who purchased shares of the Rackspace Hosting, Inc. (NYSE:RAX) and currently hold any of those NYSE:RAX shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm is at an early stage and concerns whether a takeover would be unfair to NYSE:RAX investors.
On May 15, 2014, Rackspace Hosting, Inc. disclosed in a filing with the SEC that in recent months, Rackspace has been approached by multiple parties who have expressed interest in exploring a strategic relationship with Rackspace, ranging from partnership to acquisition. Rackspace Hosting said that its board decided to hire Morgan Stanley to evaluate the inbound strategic proposals and to explore other alternatives which could advance Rackspace’s long-term strategy. On May 16, 2014, an article stated that potential suitors for a takeover of Rackspace Hostings could be companies such as AT&T, IBM, EMC, HP, and VMware.
Shares of Rackspace Hosting, Inc. (NYSE:RAX) jumped from a close of $28.64 per share on May 14, 2014, to as high as $37.37 per share on May 16, 2014.
However, given that at least one analyst has set the high target price for NYSE:RAX shares at $67.00 per share. the investigation a law firm concerns whether the Rackspace Hosting Board of Directors will undertake an adequate sales process, adequately shop the company before entering into any transaction, maximize shareholder value by negotiating the best price, and act in the shareholders’ best interests in connection with the proposed sale.
Rackspace Hosting, Inc. (NYSE:RAX) reported that its annual Total Revenue rose from $780.55 million in 2010 to over $1.53 billion in 2013 and that its respective Net income increased from $46.36 million to $86.74 million. Shares of Rackspace Hosting, Inc. traded as high as $78.93 per share in early 2013.
On June 9, 2014, NYSE:RAX shares closed at $37.74 per share.
Those who are current investors in Rackspace Hosting, Inc. (NYSE:RAX) and purchased their NYSE:RAX shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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