Block & Leviton LLP Investigates Aviv REIT, Inc. for Possible Breaches of Fiduciary Duty in Connection with Its Proposed Merger with Omega Healthcare Investors, Inc.
BOSTON, Oct. 31, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duty by the Board of Directors of Aviv REIT, Inc. ("Aviv" or the "Company") (NYSE: AVIV) concerning its proposed merger with Omega Healthcare Investors, Inc. ("Omega") (NYSE: OHI). The total transaction value is estimated to be $3.0 billion.
Aviv stockholders will receive only a fixed exchange ratio of 0.90 Omega shares for each share of Aviv common stock they own. Based on the closing stock price for Omega on Thursday, October 30th, 2014, this consideration would be equivalent to just $34.97 of Omega stock for each Aviv share, representing a premium to Aviv shareholders of barely 16%. Because the exchange ratio is fixed and the Company has not indicated in its announcement that there has been a price collar established, Aviv stockholders likely have no protection against a future drop in the price of Omega shares, and could experience an even smaller, or negative, premium as a result of the proposed merger.
Shares of the Company increased approximately 15% in the month of October, showing that investors' purported premium might have been eclipsed in short order without the proposed merger.
Block & Leviton's investigation seeks to determine, among other things, whether Aviv's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed merger with Omega and the fairness of the process by which they considered and approved the transaction. The firm is also investigating whether or not Omega's officers and board members aided and abetted such breaches of fiduciary duty.
If you are a shareholder of Aviv and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, at (617) 398-5600 or email him at [email protected].
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years. This notice may constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
[email protected]
(617) 398-5600
SOURCE Block & Leviton LLP
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