Robbins Arroyo LLP: Acquisition of OM Group Inc. (OMG) by Funds Managed By Affiliates of Apollo Global Management LLC (APO) May Not Be in Shareholders' Best Interests
SAN DIEGO and CLEVELAND, June 1, 2015 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of OM Group Inc. (NYSE: OMG) by certain funds managed by affiliates of Apollo Global Management LLC (NYSE: APO). On June 1, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which the Apollo funds will acquire OM Group. Under the terms of the agreement, OM Group shareholders will receive $34.00 in cash for each share of OM Group common stock.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/noteworthy-cases/om-group-inc
Is the Proposed Acquisition Best for OM Group and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at OM Group is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $34.00 merger consideration represents a premium of only 17.9% based on OM Group's closing price on May 1, 2015. This premium is significantly below the average one-month premium of nearly 27% for comparable transactions within the past five years. Further, the $34.00 merger consideration is below the target price of $49.00 set by an analyst at APB Financial Group on March 31, 2015, $37.00 set by an analyst at BB&T Capital Markets on May 12, 2015, and $35.00 set by an analyst at Northcoast Research on January 13, 2015. In the last three years, OM Group traded as high as $37.58 on January 21, 2014, and most recently traded above the target price – at $34.45 – on March 25, 2014.
OM Group 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. OM Group 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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