NEW YORK, Oct. 30, 2015 /PRNewswire/ -- The proposed
acquisition of Diamond Foods Inc. ("DMND" or the "Company") by
Snyder's-Lance Inc. ("Snyder's-Lance") is being investigated by
WeissLaw LLP for possible breaches of fiduciary duty and other
violations of law by the Board of Directors of DMND. On
October 28, 2015, the Company
announced it had reached a definitive agreement for Snyder's-Lance to acquire DMND in a
transaction valued at approximately $1.91
billion, inclusive of debt. Under the terms of the
agreement, shareholders of DMND will receive $12.50 in cash and 0.775 of a Snyder's-Lance share for each DMND share they
own; representing a total consideration of $40.46 per share.
WeissLaw is investigating whether DMND's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, the offer price represents a mere 13% premium over DMND's
October 27 trading price of
$35.77, which is substantially lower
than the recommended 20%-30% range. Additionally, one analyst
noted that DMND "reported significant earnings per share
improvement in the recent quarter . . . [and] has demonstrated a
pattern of positive [] growth over the past two years." The
Company reported non-GAAP diluted earnings per share of
$1.10 in fiscal 2015, representing an
increase of 71.9% year-over-year. Finally, upon closing, the
Company's shareholders will own a mere 26% of the newly combined
company.
Given these facts, WeissLaw is investigating the Board of
Directors' decision to sell DMND and whether DMND shareholders will
obtain their fair proportionate share of the Company's continued
success and future growth prospects. If you own DMND shares
and would like more information about your rights or our
investigation, please contact Joshua
Rubin either by telephone at (888) 593-4771 or by
email at stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for defrauded
clients and obtained important corporate governance relief in many
of these cases. If you have information or would like legal
advice concerning possible corporate wrongdoing (including insider
trading, waste of corporate assets, accounting fraud, or materially
misleading information), consumer fraud (including false
advertising, defective products, or other deceptive business
practices), or anti-trust violations, please email us at
stockinfo@weisslawllp.com or fill out the form on our
website,
http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP