Investors who purchased shares of Alterra Capital Holdings Ltd (NASDAQ:ALTE)
The plaintiff alleges that the defendants breached their fiduciary duties owed NASDAQ:ALTE stockholders by agreeing to sell the company too cheaply via an unfair process.
On December 19, 2012, Markel Corporation (NYSE: MKL) and Alterra Capital Holdings Limited (NASDAQ: ALTE; BSX: ALTE.BH) announced that their respective boards of directors have each approved a definitive merger agreement. Based on Markel’s closing price of $459.30 as of January 16, 2013, the deal values Alterra Capital Holdings Ltd at about $29.75per NASDAQ:ALTE share.
However, the plaintiff alleges that the offer is too low and undervalues the company. Indeed, at least one analyst has set the High Target price for NASDAQ:ALTE shares at $31.00 per share. Furthermore, Alterra Capital Holdings’ financial performance improved lately. For instance, it reported that its annual Revenue rose from $746.99 million in 2008 to over $16.2 billion in 2011 and its Net Loss of $175.32 million in 2008 turned into a Net Income of $65.28 million in 2011.In addition, shares of Alterra Capital Holdings Ltd (NASDAQ:ALTE)
Furthermore, so the plaintiff, the process is unfair as well. The plaintiff says that the sales process discourages other potential suitors.
Those who are current investors in Alterra Capital Holdings Ltd (NASDAQ:ALTE)