CPI International, Inc. investor investigation concerning unfairness of buyout

Nov. 29, 2010 - PRLog -- An investigation on behalf of CPII investors concerning whether the offer to take over CPI International at $19.50 per share and sale process are unfair to investors of CPI International, Inc.  and whether certain officers and directors at CPI Intl. breached their fiduciary duties was announced.

If you are a current investor in CPI International, Inc.  and purchased your CPII shares prior to the buyout announcement, and/or if you 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 concerns whether CPI International, Inc. and certain other of its officers and directors breached their fiduciary duties owed to investors of CPI International, Inc.   in connection with the proposed takeover.

On Friday, November 26, 2010 CPI International, Inc.  announced the signing of a merger agreement under which CPI International (CPI) will be acquired by an affiliate of Veritas Capital Fund IV for $19.50 per share in cash at a transaction value of approximately $525 million.

CPI International, Inc said the purchase price reflects a premium of approximately 35 percent over the closing price of CPII common stock on November 24, 2010, and 38 percent over the average closing price of the CPII common stock for the 90 days ending November 24, 2010.

Shares in the open market of CPI International, Inc.  traded before the announcement at $14.50 per share and jumped in response to the takeover news to $19.31 per share.

But an investigation by a law firm concerns whether the sale process is unfair to the shareholders of CPI International, Inc.  and whether the offer undervalues CPI International, Inc.

CPI International reported over the past four 52week filing periods relatively consistent Total Revenue ranging from $332.88million to $370.01million. Its Net Income over the same period ranged from $17.22million to lately $23.47million.

Therefore the investigation concerns whether the CPI Intl. Board of Directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of CPI International, Inc.  and breached their fiduciary duties to CPI Intl, Inc. (CPII) shareholder by failing to adequately shop the Company before entering into the transaction.

Those who are current investors in CPI International, Inc. (Public, NASDAQ-CPII) and purchased their CPII shares prior to the buyout announcement, and/or those who 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.