Robbins Arroyo LLP: Acquisition of Con-Way Inc. (CNW) by XPO Logistics, Inc. (XPO) May Not Be in Shareholders' Best Interests
SAN DIEGO and ANN ARBOR, Mich., Sept. 10, 2015 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Con-Way Inc. (NYSE: CNW) by XPO Logistics, Inc. (NYSE: XPO). On September 9, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which XPO will acquire Con-Way. Under the terms of the agreement, Con-Way shareholders will receive $47.60 in cash for each share of Con-Way common stock.
Is the Proposed Acquisition Best for Con-Way and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Con-Way is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $47.60 merger consideration represents a premium of only 34% based on Con-Way's closing price on September 9, 2015. This premium is significantly below the average one-day premium of nearly 41% for comparable transactions within the past three years. Further, the $47.60 merger consideration is significantly below the target price of $59.00 set by an analyst at Thompson, Davis & Company on September 16, 2013; the target price of $50.00 set by an analyst at Buckingham Research Group on July 13, 2015; and the target price of $49.00 set by an analyst at Macquarie on July 8, 2015. In the last three years, Con-Way traded as high as $53.54 on September 15, 2014, and most recently traded above the merger consideration – at $49.36 – on January 5, 2015.
Con-Way shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Con-Way shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003 or [email protected].
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP
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