The Law Office of Abe Shainberg Launches an Investigation into the Possible Breaches of Fiduciary Duty by the Board of Rome B...
October 27 2010 - 4:07PM
Business Wire
The Law Office of Abe Shainberg is investigating the Board of
Directors of Rome Bancorp, Inc. (Nasdaq: ROME) for possible
breaches of fiduciary duty and other violations of state law in
connection with their attempt to sell the Company to Berkshire
Hills Bancorp, Inc. (Nasdaq: BHLB). Under the terms of the proposed
deal, 70% of the outstanding Rome shares will be exchanged for
Berkshire shares at a fixed exchange ratio of 0.5658 Berkshire
shares for each share of Rome. The remaining 30% of Rome shares
will be exchanged for cash in the amount of $11.25 per share. Based
on Berkshire's closing stock price of $18.78 on October 11, 2010,
the combined consideration for Rome's shares is calculated at
$10.81 per share. The total transaction is valued at approximately
$74 million.
The investigation concerns whether the Rome Board of Directors
breached their fiduciary duties to Rome stockholders by failing to
adequately shop the Company before entering into this transaction
and whether Berkshire Hills is underpaying for Rome shares. At
least one analyst set a price target for Rome stock at $11.00 per
share.
If you own common stock in Rome and wish to obtain additional
information, please contact Abe Shainberg, Esq. either via email at
as@ashainberglaw.com or by telephone at (212) 425-7286, or visit
http://www.ashainberglaw.com/rome-bancorp.html.
Mr. Shainberg has expertise in prosecuting investor securities
litigation, is a certified and registered arbitrator and mediator
involving financial matters, and represents investors in various
matters nationwide.
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