Robbins Umeda LLP Announces an Investigation of Metropolitan Health
Networks, Inc.
SAN DIEGO, Nov. 6, 2012 /PRNewswire/ -- Shareholder
rights firm Robbins Umeda LLP has commenced an investigation into
possible breaches of fiduciary duty and other violations of the law
by members of the board of directors of Metropolitan Health
Networks, Inc. (NYSE: MDF) in connection with their efforts to sell
the company to Humana Inc. (NYSE: HUM). Concerned
shareholders who would like more information about their rights and
potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003,
info@robbinsumeda.com, or via the shareholder information form on
the firm's website.
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On November 5, 2012, Metropolitan
and Humana announced that they had entered into a definitive merger
agreement under which Metropolitan will be acquired by Humana.
According to the terms of the deal, Humana will acquire
Metropolitan through an all cash tender offer valued at
approximately $850 million.
Metropolitan shareholders will receive $11.25 per share. The $11.25 per share offer price represents a premium
of only 3.7% based on Metropolitan's closing price on November 5, 2012. In contrast, in deals
announced within the last year in the Healthcare Providers and
Services sector, of which Metropolitan is a member, the average
one-day premium has been 49.88%. Further, multiple analysts
have set price targets higher than the $11.25 offer price with at least one analyst from
Sidoti & Company setting a price target for Metropolitan stock
at $13.00 per share as recently as
September 26, 2012. The
transaction is expected to close by the end of the first quarter of
2013.
Robbins Umeda LLP's investigation focuses on whether the board
of directors at Metropolitan is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders. On August 9,
2012, Metropolitan reported financial results for the second
quarter of fiscal 2012 with revenue for the second quarter of 2012
of $193.4 million compared to
$97.3 million for the second quarter
of 2011, an increase of $96.1 million
or 98.8%. Metropolitan's gross profit was $28.4 million for the second quarter of 2012
compared to $16.6 million for the
same quarter in 2011, an increase of $11.8
million or 71.1%. Given these financial results,
Robbins Umeda LLP is examining the board of directors' decision to
sell Metropolitan now rather than allow shareholders to continue to
participate in the company's continued success and future growth
prospects.
Robbins Umeda LLP attorneys highlight that Metropolitan
shareholders have the option to file a class action lawsuit against
the company to secure the best possible price for the company's
shareholders and the disclosure of material information to
shareholders so they can vote on the transaction in an informed
manner.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The 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. For more information, please go to
http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/metropolitan-health-networks/
Attorney Advertising.Past results do not guarantee a similar
outcome.
Contact:
Robbins Umeda LLP
Gregory E. Del Gaizo
info@robbinsumeda.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsumeda.com
SOURCE Robbins Umeda LLP