Block & Leviton LLP Investigates Petsmart, Inc. for Possible Breaches of Fiduciary Duty in Connection with Their Leveraged Buy-Out by a Consortium Led by BC Partners
BOSTON, Dec. 14, 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 Petsmart, Inc. ("Petsmart" or the "Company") (NASDAQ: PETM) concerning the proposed acquisition of the Company by a consortium of buyers led by BC Partners and which includes Longview Asset Management ("Longview"), current holder of 9% of the Company's stock.
Under the terms of the proposed transaction, shareholders of the Company will receive only $83 per share, representing a premium of just 5.5% to the previous day's closing price. Longview will maintain at least a 3% stake in Petsmart as a limited participant in the consortium acquiring the Company. Longview has also pledged to vote its 9% stake in the Company in favor of the proposed buyout. It is not clear whether the deal is subject to a majority of the minority voting provision.
The value of the transaction is approximately $8.7 billion, making it, according to published reports, the largest leveraged buyout transaction of 2014. Petsmart has been under pressure for months to engage a strategic transaction, and activist investor Jana Partners LLC recently proposed a slate of replacements to the Company's Board of Directors.
The proposed transaction is expected to close in the first half of 2015, subject to regulatory approval.
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.
If you are a shareholder of Petsmart 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-petsmart-inc-for-possible-breaches-of-fiduciary-duty-in-connection-with-their-leveraged-buy-out-by-a-consortium-led-by-bc-partners-300009430.html
SOURCE Block & Leviton LLP
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