Block & Leviton LLP Investigates Cubist Pharmaceuticals Inc. for Possible Breaches of Fiduciary Duty in Connection with Its Proposed Acquisition by Merck & Co.
BOSTON, Dec. 8, 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 Cubist Pharmaceuticals Inc. ("Cubist" or the "Company") (NASDAQ: CBST) concerning the proposed acquisition of the Company by Merck & Co. ("Merck") (NYSE: MRK). Cubist is known for its success in advanced antibiotic research, particularly its research on superbugs -- diseases with immunity to traditional antibiotic treatments. The Company is the maker of the antibiotic Cubicin and a group of other powerful antibiotics. Another antibiotic, Zerbaxa, is expected to get approval from U.S. regulators this month.
Under the terms of the proposed transaction, shareholders of the Company will receive only $102 per share, representing a premium of just 37% to the previous day's closing price. This transaction appears to be far below that received in recent similar industry transactions. The value of the transaction is approximately $8.4 billion. Cubist's stock price has surged approximately 24% in less than two months.
The transaction will take place as a tender offer and is expected to close within the first quarter of 2015. If the tender offer obtains a simple majority of shares, the remainder of Cubist's shares will be automatically tendered at the offer price through a second-step merger that will not require a shareholder vote.
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. The investigation also seeks to determine whether Merck aided and abetted the Company's potential breach of fiduciary duty.
If you are a shareholder of Cubist 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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/block--leviton-llp-investigates-cubist-pharmaceuticals-inc-for-possible-breaches-of-fiduciary-duty-in-connection-with-its-proposed-acquisition-by-merck--co-300006133.html
SOURCE Block & Leviton LLP
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