Law Office of Brodsky & Smith, LLC Announces Investigation on Behalf of Shareholders of Allied Capital Corp.

• Press Release
• Source: Brodsky & Smith, LLC
• On 3:20 pm EDT, Monday October 26, 2009

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Allied Capital Corp. (“Allied” or the “Company”) (NYSE:ALD - News) relating to the proposed acquisition by Areas Capital Corp., a global private equity firm (“Ares”) (Nasdaq:ARCC - News). The all stock transaction is valued at approximately $648 million or $3.47 a share.

Related Quotes

Symbol	Price	Change
ALD	3.62	+0.05

{"s" : "ald,arcc","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Under the proposed agreement, Allied stockholders will receive 0.325 Ares shares for each Allied share resulting in approximately 58.3 million Ares shares being issued in exchange for the approximately 179.4 million outstanding Allied shares. The investigation concerns possible breaches of fiduciary duty and other violations of state law related to the Allied board’s approval of the proposed merger. The transaction appears to be unfair, in part, given that Allied stock was trading at $4.05 a share on July 30, 2009 and $4.80 on January 6, 2009.

If you own shares of Allied and wish to discuss the legal ramifications of the proposed acquisition, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.

Brodsky & Smith, LLC
Jason L. Brodsky, Esquire
or
Evan J. Smith, Esquire
877-LEGAL-90
clients@brodsky-smith.com