Acquisition of White River Capital by Parthenon Capital May Not Be
in the White River Shareholders' Best Interests
SAN DIEGO and RANCHO SANTA FE, Calif., Nov. 16, 2012 /PRNewswire/ -- Shareholder
rights attorneys at Robbins Umeda LLP are investigating possible
breaches of fiduciary duty and other violations of the law by
members of the board of directors of White River Capital, Inc.
(NYSE: RVR) in connection with their efforts to sell the company to
the private equity firm Parthenon Capital Partners.
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On November 15, 2012, White River
and Parthenon announced they had entered into a definitive merger
agreement under which Parthenon will acquire White River through an
all cash tender offer with a total value of $79.5 million. Parthenon shareholders will
receive $21.93 per share. The
merger agreement also provides for a termination fee of
$3.975 million dollars, more than 5%
of the value of the deal.
The Board of Directors' Actions May Prevent White River
Shareholders from Receiving the Maximum Value for Their
Stock
Robbins Umeda LLP's investigation focuses on whether the board
of directors at White River is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders. The
offer price is below the company's stock closing price of
$21.99 reached on November 12, 2012, and substantially below the
$27.80 per share price the Company's
stock traded at less than a year ago. Further, the company's
financials have remained strong in the face of challenging economic
conditions faced by the industry, leading Chief Financial Officer,
Martin J. Szumski, to comment
recently that the company has been successful in "generating strong
economic growth" despite these conditions. Given these
financials and the company's historical stock price, the firm is
examining the board of directors' decision to sell White River now,
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
White River shareholders have the option to file a class action
lawsuit against the company to secure the best possible price for
shareholders and the disclosure of material information so
shareholders can vote on the transaction in an informed manner.
White River shareholders interested in information about
their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsumeda.com, or via the shareholder information form
on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. For more information, please go to
http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/white-river-capital/
Attorney Advertising.Past results do not guarantee a similar
outcome.
Contact:
Robbins Umeda LLP
Darnell R. Donahue
ddonahue@robbinsumeda.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsumeda.com
SOURCE Robbins Umeda LLP