CKX Inc. Stockholders file Lawsuits in effort to Stop the Buyout by Apollo Global Management

May 26, 2011 - PRLog -- The Shareholders Foundation announces that at least three investors in CKX Inc.  shares filed lawsuits against the directors of "American Idol" owner CKx, Inc. in effort to block the proposed takeover of Ckx by Apollo Global Management.

If you purchased shares of CKX Inc.  and currently continue to hold those NASDAQ CKXE shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaints the plaintiff allege that defendants breached their fiduciary duties in connection the proposed takeover.

On May 10, 2011, before the market CKx, Inc.  had announced that it has entered into a merger agreement to be acquired by an affiliate of Apollo Global Management. Under the terms of the proposed transaction, CKx, Inc stockholders will receive $5.50 in cash for each CKXE share that they hold. CKx, Inc said the offer represents an approximately 40% premium over CKx's average closing price over the past six months and an approximately 25% premium over the closing price on Monday, May 9, 2011.

Indeed, following the takeover announcement shares of CKX Inc.  jumped from $4.45 on May 9th to $5.46 on May 10th.

However, the plaintiffs alleges the offer unverdavlues Ckx. In fact recent trading prices for CKXE shares have been close under and above the current offer, leaving CKX investors with practically no premium, but asking them to hand over their shares at a discount. CKXE shares traded as recently as October 2010 as high as $5.30, during August 2010 at $5.50 and in July 2010 as high as $5.60. Additionally, at least one analyst has set a target price as high as $8.00 per share and CKXE shares were also down from over $10 in 2008, and at almost $15 per share in 2007.  

Furthermore the plaintiffs allege that the defendatns failed to maximize shareholder value. In fact last year in May CKX, Inc.  announced that it had received a proposal from a group of investors led by Simon Fuller to acquire all of the outstanding shares of common stock of CKX, Inc that it does not currently own for approx. $6.45 per share in cash, thus above the current offer, but then announced on October 27, 2010 that it was no longer discussing a potential sale of the Company or of a controlling stake in the Company.

Those who purchased shares of CKX Inc. (Public, NASDAQ-CKXE) and currently continue to hold those NASDAQ-CKXE shares, 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 a professional portfolio monitoring service and 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.