Faruqi & Faruqi, LLP Investigates Acquisition of PMA Capital Corporation - PMACA
July 14 2010 - 1:10PM
Business Wire
Faruqi & Faruqi, LLP, a leading New York securities firm, is
investigating the Board of Directors of PMA Capital Corporation
(“PMA” or the “Company”)(NASDAQ: PMACA) for possible breaches of
fiduciary duty and other violations of state law or federal law in
connection with their attempt to sell the Company to Old Republic
International Corp. (NYSE: ORI). Under the terms of the
transaction, PMA Capital shareholders will receive 0.55 shares of
Old Republic common stock in exchange for each outstanding common
share of PMA Capital, which exchange rate may be adjusted upwards
or downwards depending on the price of Old Republic’s common stock
preceding the closing of the merger, but will not exceed 0.60 or be
less than 0.50. Based on the prior closing price of Old Republic,
the transaction values PMA capital stock at approximately $7.10 per
share for a total transaction value of $365 million, including the
assumption of debt.
The investigation concerns whether the transaction is
undervaluing the company. At the time of the announcement, the
exchange ratio represented approximately 15% premium to the June 8
closing price of PMA shares. However, on May 12, 2010, less than
one month ago, PMA shares traded as high as $7.54 per share. Old
Republic closed at $12.80 on June 10, putting the exchange price at
$7.04 per share.
Faruqi & Faruqi, LLP is a national law firm which represents
investors and individuals in class action litigation. The firm is
focused on providing exemplary legal services in complex litigation
in the areas of securities, shareholder, antitrust and consumer
litigation, through all phases of litigation. The firm has an
experienced trial team which has achieved significant victories on
behalf of the firm’s clients.
If you own common stock in PMA and wish to obtain additional
information, please visit us at http://www.faruqilaw.com/merger.php
or contact Juan E. Monteverde, Esq. either via email at
jmonteverde@faruqilaw.com or by telephone at (877) 247-4292 or
(212) 983-9330.
Attorney Advertising. (C) 2010 Faruqi & Faruqi, LLP. The law
firm responsible for this advertisement is Faruqi & Faruqi, LLP
(www.faruqilaw.com). Prior results do not guarantee or predict a
similar outcome with respect to any future matter. We are happy to
discuss your particular case.
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