NASDAQ:STEC Investor Alert: Buyout of STEC, Inc. under Investigation
The Shareholders Foundation announces that an investigation on behalf of investors in STEC, Inc. (NASDAQ:STEC) shares is ongoing concerning whether the offer by Western Digital® Corporation to acquire STEC, Inc. for $6.85 per NASDAQ:STEC share and the takeover process are unfair to investors in STEC shares.
Santa Ana, CA based STEC, Inc. is a global provider of enterprise-class Flash-based solid-state drives that are designed for systems and applications that require high input and output.
Investors who purchased shares of STEC, Inc. (NASDAQ:STEC) prior to June 24, 2013 , and currently hold any of those STEC shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of STEC, Inc. breached their fiduciary duties owed to NASDAQ:STEC investors in connection with the proposed acquisition.
On June 24, 2013, Western Digital® Corporation (NASDAQ: WDC) and STEC, Inc. (NASDAQ:STEC) announced that they have entered into a merger agreement under which STEC, Inc. will be acquired by HGST, a wholly-owned subsidiary of Western Digital. Under the terms of the agreement STEC, Inc. will be acquired for approximately $340 million in cash, which equates to $6.85 per share.
However, given that NASDAQ:STEC traded in 2012 as high as $10.20 per share and in 2011 as high as $23.79 per share, the investigation by a law firm concerns whether the offer is too low for NASDAQ:STEC stockholders.
More specifically, given that certain directors and executive officers of sTec have already entered into separate voting agreements under which they have agreed, subject to certain exceptions, to vote their respective shares in favor of the proposed transaction, the investigation focuses on whether the STEC Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
On June 28, 2013, NASDAQ:STEC shares closed at $6.72 per share.
Those who are current investors in STEC, Inc. have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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