Block & Leviton LLP Investigates CareFusion Corporation for Possible Breaches of Fiduciary Duty In Connection With Its Proposed Acquisition By Becton Dickinson & Company

BOSTON, Oct. 5, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible breaches of fiduciary duty by the Board of Directors of CareFusion Corporation (NYSE: CFN) ("CareFusion" or the "Company"), a leading medical technology company, concerning its proposed acquisition by Becton Dickinson & Company ("Becton Dickinson") (NYSE: BDX). 

Under the terms of the proposed transaction, shareholders of the Company will receive a total of $58.00 a share - $49.00 in cash and 0.0777 of a share of Becton Dickinson, representing a premium to investors of only 26%.  The total value of the proposed transaction is estimated at $12.2 billion.

The purported premium fails to account for the strong growth prospects of the Company.  Indeed, CareFusion hit its 52 week high on Friday, October 3, 2014, the last day of trading prior to the announcement of the proposed transaction.  The Company's share price has increased over 17% in 2014 alone, and has spiked over 26% in the previous 12 months.  The steady growth has accompanied spectacular earnings results, with CareFusion delivering a 44% increase in fourth quarter adjusted earnings compared to fourth quarter 2013.  Impressive fiscal 2014 fourth-quarter results were the product of double-digit bottom-line growth, accretive investments and acquisitions, and solid organic revenue growth across the Company's businesses which combined contributed to the growth trajectory of CareFusion and indicate good momentum for fiscal 2015.  As such, the purported transaction premium would likely have been surpassed in short order by expected continued growth in CareFusion's stock price

Block & Leviton's investigation seeks to determine, among other things, whether directors of the Company breached their fiduciary duties by failing to maximize shareholder value in the potential acquisition and the process by which the directors considered and approved the transaction.  Block & Leviton is also investigating potential aiding and abetting of fiduciary breaches by Becton Dickinson.

If you are a shareholder of CareFusion and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven 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.  This notice may constitute attorney advertising.

Contact:
BLOCK & LEVITON LLP
Steven Harte, Esq.
[email protected]
(617) 398-5600

SOURCE Block & Leviton LLP

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