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King Pharmaceuticals, Inc. board investor investigation

Investigation on behalf of investors of King Pharmaceuticals, Inc. (NYSE:KG) over possible breaches of fiduciary duties by its board – KG stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
 
mail@shareholdersfoundation.com
mail@shareholdersfoundation.com
PRLog - Oct. 12, 2010 - In response to the buyout offer by Pfizer to take over King Pharmaceuticals, Inc. at $14.25 an investigation on behalf of investors of King Pharmaceuticals, Inc. (NYSE:KG) over possible breaches of fiduciary duties in connection with the proposed takeover was announced.

If you are a current investor in King Pharmaceuticals, Inc. (NYSE:KG) shares, and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concern whether King Pharmaceuticals and its Board of Directors breached their fiduciary duties owed to King Pharmaceuticals, Inc. (NYSE:KG) investors by agreeing to the current conditions of the proposed takeover by Pfizer.

On Tuesday, October 12, 2010, King Pharmaceuticals, Inc. (NYSE: KG) and Pfizer Inc.(NYSE: PFE) announced that they have entered into a merger agreement under which Pfizer will acquire King Pharmaceuticals, Inc for $3.6 billion in cash, or $14.25 per share. According to King Pharmaceuticals the offer represents a premium of approximately 40% to King Pharmaceuticals’ closing price as of October 11, 2010, and 46% percent to the one-month average closing price as of the same date.  

But the investigation by a law firm questions whether the sale process and the offered price are unfair to the shareholders of King Pharmaceuticals, Inc. (NYSE:KG).

Shares of King Pharmaceuticals, Inc. (KG), which traded before the news at roughly $10.20 per share, jumped to $14.15 per share or by almost 40% in response to the takeover announcement. But King Pharmaceuticals shares traded as early as April at $12.14, in March as high as $12.54, and in January over $13 per share leaving King Pharmaceuticals investors with a meager premium. During 2007 KG shares traded as high as $21.46 per share and at least one analyst has set a price target of $15.00 per share for King Pharmaceuticals stock. In addition King Pharmaceuticals reported over the past four years steady 12months revenue ranging from $1.565billion to $2.136billion.

Therefore the investigation concerns whether the King Pharmaceuticals board of directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of King Pharmaceuticals, Inc. (NYSE:KG) and breached their fiduciary duties to King Pharmaceuticals, Inc. (NYSE:KG) shareholder by failing to adequately shop the Company before entering into the transaction with Pfizer.

Those who are current investors in King Pharmaceuticals, Inc. (Public, NYSE:KG) common shares, and/or have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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Contact Email:
***@shareholdersfoundation.com Email Verified
Source:Shareholders Foundation, Inc.
Phone:+1-(858)-779-1554
Zip:92108
City/Town:San Diego - California - United States
Industry:Banking, Business, Finance
Tags:kg, king, king pharma, king pharmaceuticals, nyse kg
Last Updated:Oct 12, 2010
Shortcut:prlog.org/10994739
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