A lawsuit was filed for investors in shares of DigitalGlobe Inc (NYSE:DGI) in connection with the proposed takeover and NYSE:DGI stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/09/2017 -- The Shareholders Foundation announces that an investor, who currently holds shares of DigitalGlobe Inc (NYSE:DGI), filed a lawsuit against the proposed takeover of DigitalGlobe Inc. by MacDonald, Dettwiler and Associates Ltd for $35.00 per share.
Investors who purchased shares of DigitalGlobe Inc (NYSE:DGI) and currently hold any of those NYSE:DGI shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:DGI stockholders by agreeing to sell DigitalGlobe Inc cheaply via an unfair process to MacDonald, Dettwiler and Associates Ltd.
On February 24, 2017, MacDonald, Dettwiler and Associates Ltd. and DigitalGlobe Inc (NYSE:DGI) announced they have entered into a merger agreement, pursuant to which MacDonald, Dettwiler and Associates Ltd will acquire DigitalGlobe for US$35.00 per share in a combination of cash and stock.
However, plaintiff claims that the proposed consideration NYSE:DGI shareholders will receive is grossly inadequate and undervalues DigitalGlobe Inc. Indeed, at least one analyst has set the high price target for NYSE:DGI shares at $44.00 per share. Furthermore, DigitalGlobe Inc reported that its annual Total Revenue rose from $702.40 million in 2015 to $725.40 million in 2016 and that its Net Income grew from $23.30 million in 2015 to $26.50 million in 2016. Shares of DigitalGlobe Inc (NYSE:DGI) reached in 2014 as high as $42.67 per share. In addition, the plaintiff alleges that the process is also unfair NYSE:DGI stockholders. The plaintiff claims that the defendants agreed to preclusive deal protection devices, such as a No solicitation and a $85 million termination fee provision, that deter other bidders from making a superior offer for the company.
On May 8, 2017, NYSE:DGI shares closed at $31.75 per share.
Those who are current investors in DigitalGlobe Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com