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Rigrodsky & Long, P.A. Investigates Buyout of Graham Packaging Company Inc. - GRM

^{Published on 2011-04-13 08:20:31 - Market Wire}
 

WILMINGTON, Del.--([ BUSINESS WIRE ])--[ Rigrodsky & Long, P.A. ] announces that it is investigating potential claims against the board of directors of Graham Packaging Company Inc. (aGraham Packaginga or the aCompanya) (NYSE: [ GRM ]) concerning possible breaches of fiduciary duty and other violations of law related to the Companya™s entry into an agreement to be acquired by Silgan Holdings Inc. (aSilgana) in a transaction valued at approximately $4.1 billion, including assumed indebtedness. Click here to learn how to join the action: [ http://www.rigrodskylong.com/news/GrahamPackagingCompanyInc-GRM ].

Under the proposed agreement, each outstanding share of Graham Packaging common stock will be converted into the right to receive $4.75 in cash and 0.402 shares of Silgan common stock. Based on the closing price of Silgan stock as of April 12, 2011, the stock component is valued at $14.81 per share and the overall transaction is valued at approximately $19.56 per share.

The investigation concerns whether Graham Packaginga™s board of directors failed to adequately shop the Company and obtain the best price possible for Graham Packaginga™s shareholders before entering into the agreement with Silgan.

Indeed, at the closing of the merger, the surviving corporation will make an aggregate cash payment of $245 million pursuant to contractual change in control provisions in the Companya™s income tax receivable agreements with an affiliate of The Blackstone Group L.P. (aBlackstonea) and the Graham family. Blackstone already owns approximately 61% of Graham Packaginga™s outstanding stock and has three members on the Companya™s Board of Directors. In addition, the Graham family owns approximately 12% of the Companya™s outstanding stock. Moreover, according to Yahoo! Finance, at least one analyst has set a price target of $22.00 per share for Graham Packaging stock.

If you own the common stock of Graham Packaging and purchased your shares before April 13, 2011, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact [ Seth D. Rigrodsky, Esquire ] or [ Noah R. Wortman, Case Development Director ], of Rigrodsky & Long, P.A., 919 N. Market Street, Suite 980, Wilmington, Delaware, by telephone at (888) 969-4242, or by e-mail to [ info@rigrodskylong.com ].

[ Rigrodsky & Long, P.A. ], with offices in Wilmington, Delaware and Garden City, New York, regularly litigates [ securities class, derivative and direct actions, shareholder rights litigation ] and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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