BUYOUT OF CAPITALSOURCE - LAW FIRM SEEKS MORE MONEY FOR SHAREHOLDERS
July 23, 2013
New York, New York
Tripp Levy PLLC, a leading national securities and shareholder rights law firm, has commenced an investigation into possible breaches of fiduciary duty by the Board of Directors of CapitalSource Inc. ("CapitalSource" or the "Company") (NYSE: CSE) concerning the proposed acquisition of the Company by PacWest Bancorp ("PacWest") (NASDAQ: PACW) in a cash and stock transaction.
Under the terms of the proposed transaction, CapitalSource shareholders will receive $2.47 in cash and 0.2837 shares of PacWest common stock for each share of the Company held. Based on the July 22, 2013, closing price of both stocks, the deal values CapitalSource at $11.68 per share, representing a premium of less than twenty percent. Total value for the transaction is estimated at approximately $2.3 billion. James J. Pieczynski, CEO of CapitalSource, will become President of the new CapitalSource division of PacWest, and other top level executives have secured continued employment with the newly combined entity. The Company's share price has increased more than 66% in the past year, and the stock was likely to continue its growth well beyond the offer price. The paltry premium appears to provide insufficient recognition of the stock's stunning growth potential.
The investigation seeks to determine, among other things, whether CapitalSource's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by PacWest and the overall fairness of the process by which the CapitalSource Directors considered and approved the transaction.
If you are an CapitalSource shareholder and would like additional information as to how you can participate with other shareholders seeking a higher price, at no cost or expense, please contact us toll free at 1-877-772-3975
not sure if anyone else picked up on this but all the management and directors of CSE are voting in favor of the deal and they put in a huge penalty fee tens of millions that another company must pay if it wants to pay a higher price. That's crazy. Why would they prevent shareholders from getting more money. they obviously did this to protect the sweetheart deal they gave themselves in selling the company.
That answer is simple. They have all received new jobs at PACW. They just gave themselves 50k shares of option shares in CSE to cover any loss in the exchange to PACW shares. In addition who knows of any golden parachutes they lined up for themselves. They don't want another company coming in and ruining their deal which benefits them and not the shareholders. Wake up folks.
If you have any doubts you have been sold out all you have to do is look at today's value and then multiply your shares by the buyer's SP and you will see it is a wash meaning you don't gain anything. In addition you might want to note all the officers get jobs with the buyer and more than likely have big parachute clauses and options for immediate retirement upon the sale conclusion.
This management team has looked after themselves once again. Look closely at this deal and do the math. Don't be duped.