CPI International, Inc. board subject of investigations for CPII shareholders

May 11, 2010 - PRLog -- An investigation on behalf of current investors in CPI International, Inc.  concerning shareholder claims over possible breaches of fiduciary duty by the board of directors of CPI International, Inc. (Public, NASDAQ-CPII)was announced.

If you currently hold shares of CPI International, Inc. , you have certain options and you should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.

The investigation by law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of CPI Intl Inc. arising out of their attempt to sell CPI International, Inc.  to Comtech Telecommunications Corp. CPI International, located in Palo Alto, California, is a provider of microwave, radio frequency, power and control products for critical defense, communications, medical, scientific and other applications. CPI International, Inc. reported in 2007 Total Revenue of $351.09million, in 2008 $370.01million, and in 2009 $332.88million.
On Monday, May 10, 2010, CPI International, Inc.  announced the signing of a merger agreement with Comtech Telecommunications Corp.  under which Comtech will purchase CPI International, Inc. in a cash and stock transaction with an enterprise value of approximately $472.3 million. Based on the May 7, 2010 closing price of Comtech stock which was $31.06, CPI shareholders will receive a combination of $9.00 in cash and a fraction of Comtech common stock that is currently valued at approximately $16.40 per CPI common share. According to CPI International the offer represents a premium of 25.7 percent as compared to the last closing price of CPI common stock and 21.3 percent as compared to the last 30 trading day average closing price.

Shares of CPI International, Inc. (CPII) traded after the announcement at $15.84 per share, and at $13.48 per share the trading day before the news. CPII were down from its52weekHigh of $16.03 per share, and over $20 per share in 2007.

The investigation by a law firm “concerns whether the CPI Intl. Board of Directors breached their fiduciary duties to CPI International (CPII) stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better value CPI International, Inc. (= NASDAQ-CPII), and whether Comtech Telecommunications Corporation is underpaying for CPI Intl (CPII), thus unlawfully harming CPII stockholders.”

Those who currently hold shares of CPI International, Inc. (Public, NASDAQ-CPII), have certain options and should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 – 1554.

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