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  • nycwest nycwest Jul 23, 2013 7:36 AM Flag



    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

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