Robbins Arroyo LLP: Acquisition of Fuel Systems Solutions, Inc. (FSYS) by Westport Innovations Inc. (WPRT) May Not Be in Shareholders' Best Interests
SAN DIEGO and NEW YORK, Sept. 1, 2015 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Fuel Systems Solutions, Inc. (NASDAQ: FSYS) by Westport Innovations Inc. (NASDAQ: WPRT). On September 1, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Westport will acquire Fuel Systems. Under the terms of the agreement, Fuel Systems shareholders will receive 2.129 shares of Westport for each share of Fuel Systems they own, the value of which is equivalent to $7.54 per share of Fuel Systems.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/fuel-systems-solutions-inc
Is the Proposed Acquisition Best for Fuel Systems and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Fuel Systems is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $7.54 merger consideration represents a premium of only 10.1% based on Fuel Systems's closing price on August 31, 2015. This premium is significantly below the average one-day premium of nearly 65.5% for comparable transactions within the past five years. Further, the $7.54 merger consideration is significantly below the target prices of four analysts ranging from $11.00 set by an analyst at Lake Street Capital Markets LLC to $8.00 set by an analyst at Canaccord Genuity. In the last three years, Fuel Systems traded as high as $21.44 on August 8, 2013, and most recently traded above the merger consideration – at $7.69 – on July 9, 2015.
Fuel Systems 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. Fuel Systems shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
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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