Robbins Arroyo LLP: Acquisition of Starz (STRZA) by Lionsgate Entertainment Corp. (LGF) May Not Be in Shareholders' Best Inte...
June 30 2016 - 2:29PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Starz (NASDAQ: STRZA)
(NASDAQ: STRZB) by Lionsgate Entertainment Corp. (NYSE: LGF). On
June 30, 2016, the two companies announced the signing of a
definitive merger agreement pursuant to which Lionsgate will
acquire Starz. Under the terms of the agreement, holders of Starz
Series A common stock will receive 0.6784 of a share of Lionsgate
stock and $18.00 in cash for each share of Starz common stock, the
value of which is equivalent to $32.21, while holders of Starz
Series B common stock will receive cash and stock valuing
$33.73.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/starz
Is the Proposed Acquisition Best for Starz and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Starz is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $32.21 merger consideration for Series
A holders represents a premium of only 14% based on Starz's closing
price on June 29, 2016. This premium is below the average one day
premium of over 17% for comparable transactions within the past
five years. Further, the merger consideration for both classes of
shares is significantly below the target prices of $35.38 set by an
analyst at FBN Securities on April 29, 2016 and $35.00 set by an
analyst at Macquarie on June 24, 2016. In the last three years,
Starz traded as high as $46.59 on July 17, 2015, and most recently
traded above the Series A merger consideration – at $32.32 – on
January 13, 2016.
In light of these facts, Robbins Arroyo LLP is examining Starz's
board of directors' decision to sell the company now rather than
allow shareholders to continue to participate in the company's
continued success and future growth prospects.
Starz shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
Starz shareholders interested in information about their rights and
potential remedies can contact attorney Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160630006185/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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