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The Law Office of Abe Shainberg Launches an Investigation into the Possible Breaches of Fiduciary Duty by the Board of Cellu Ti

^{Published on 2010-09-17 07:31:41 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--The Law Office of Abe Shainberg is investigating the Board of Directors of Cellu Tissue Holdings, Inc. (NYSE: CLU) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to Clearwater Paper Corp. (NYSE: CLW). Under the terms of the transaction, Cellu Tissue shareholders will receive $12 in cash per share for a total transaction value of approximately $502 million, including assumed debt.

The investigation concerns whether the Cellu Tissue Board of Directors breached their fiduciary duties to Cellu Tissue stockholders by failing to adequately shop the Company before entering into this transaction and whether Clearwater Paper is underpaying for Cellu Tissue shares. Cellu Tissue went public in January 2010 at $12.30 a share and at least one analyst has set a price target for Cellu Tissue stock at $16.00 per share. Also, Cellu Tissue's Chief Executive Russell Taylor and its largest shareholder, private equity firm Weston Presidio V. L.P., together own about 56 percent of the company's stock and have agreed to vote in favor of the deal.

If you own common stock in Cellu Tissue and wish to obtain additional information, please contact Abe Shainberg, Esq. either via email at [ as@ashainberglaw.com ] or by telephone at (212) 425-7286, or visit [ http://www.ashainberglaw.com/cellutissue-clu.html ].

Mr. Shainberg has expertise in prosecuting investor securities litigation, is a certified and registered arbitrator and mediator involving financial matters, and represents investors in various matters nationwide.