NYSE:LVB Investor Alert: Lawsuit filed to Halt Takeover of Steinway Musical Instruments Inc
The Shareholders Foundation announces that an investor, who currently holds NYSE:LVB shares, filed a lawsuit in effort to halt the takeover of Steinway Musical Instruments Inc by Kohlberg & Company for $35.00 per NYSE:LVB share.
Waltham, MA based Steinway Musical Instruments, Inc. through its wholly owned subsidiaries, is engaged in the design, manufacture, marketing and distribution of musical instruments
Investors who purchased shares of Steinway Musical Instruments Inc (NYSE:LVB) prior to July 1, 2013 , and currently hold any of those NYSE:LVB shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:LVB stockholders by agreeing to sell the company too cheaply via an unfair process.
On July 1, 2013, Steinway Musical Instruments Inc (NYSE:LVB) announced that it has entered into an agreement to be acquired by an affiliate of Kohlberg & Company in a transaction valued at approximately $438 million. Under the terms of the agreement, an affiliate of Kohlberg & Company will commence a tender offer to acquire all of the outstanding shares of Steinway Musical Instruments’ common stock for $35.00 per share in cash.
However, the plaintiff claims that the $35.00-offer is too low and undervalues the company. Indeed, following the takeover news NYSE:LVB shares increased in the open market to $36.35 per share on July 11, 2013, thus above the current offer.
Furthermore, the plaintiff alleges that the process is unfair to NYSE:LVB investors too. The plaintiff says that despite a 45-days go-shop period provision, the defendants agreed to certain onerous and preclusive deal protections devices, such as a $13.4 million termination fee and a matching rights provision. that make the proposed transaction a fait accompli and ensure that no competing offers with emerge for Steinway Musical Instruments Inc.
Steinway Musical Instruments Inc reported that its annual Total Revenue rose from $346.26 million in 2011 to $353.72 million in 2012 and that its respective Net Income increased from $1.63 million to $13.51 million. Shares of Steinway Musical Instruments Inc (NYSE:LVB) grew from $9.44 in March 2009 to $29.62 per share in June 2013.
On July 22, 2013, NYSE:LVB shares closed at $36.17 per share.
Those who are current investors in Steinway Musical Instruments Inc (NYSE:LVB), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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